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HomeMy WebLinkAbout2002 Financial Statement June 30� � � � � � � � � � � � , � i ' ' � , TABLE OF CONTENTS INTRODUCTORY SECTION P�gg Letterof Transmittal ...................................................................................... I Town of Marana Officials .............................................................................. IX Town of Marana Organizational Chart .......................................................... X GFOA Certificate of Achievement ................................................................ XI FINANCIAL SECTION Opinion of the Certified Public Accountant ........................................... '�- _ '_u� - �.� '�t'� '�Il�?1� Combined Balance Sheet - All Fund Types and AccountGroups ............................................................ 1 Combined Statement of Revenues, Expenditures and Changes in Fund Balances - All Governmental Fund Types............................................................................. 2 Combined Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual - All Governmental Fund Types .......................................... 3 Combined Statement of Revenues, Expenses and Changes in Equity - All Proprietary Fund Types.......... 4 Combined Statement of Cash Flows - All Proprietary FundTypes .................................................................... 5 Notes to Combined Financial Statements ........................ - •� • � • • � • . • � � � • � "t�'_ . • -• General Fund Comparative Balance Sheets .........................................A-1 Statement of Revenues, Expenditures and Changes in Unreserved Fund Balance - Budget and Actual......A-2 Special Revenue Funds Combining Balance Sheet .............................................B-1 Combining Staxement of Revenues, Expenditures and Chanaes in Fund Balances ..........................................B-2 1999 Community Development Block Grant - Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual ......................................B-3 1 2 � 5 7 � . 36 37 42 .. .� � TABLE OF CONTENTS •u• � �� �� � i� .�� p •.r •.� "11"1 .1• _ 1"� • -• .1 ) �,�. Special Revenue Funds (Continued) 2000 Community Development Block Grant - Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual ......................................B-4 HOME Program - Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual..........B-5 COPS Grant - Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual ..........B-6 RICO - Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual..........B-7 GITEM - Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual ..........B-8 HIDTA - Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual ..........B-9 MANTIS - Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual..........B-10 Auto Theft - Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual..........B-11 Highway User Revenue - Statement of Revenues, Expenditures and Changes in Fund Balance - Budget Actual .......................................................B-12 LTAF - Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual..........B-13 LLEBG - Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual..........B-14 Debt Service Funds Combining Balance Sheet ............................................ Combining Statement of Revenues, Expenditures and Changes in Fund Balances ......................................... 2000 General Obligation - Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual ...................................................... 1997 General Obligation - Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual .................................. ..................... G1 G2 C-3 C-4 47 48 49 50 51 52 53 54 55 56 57 58 �9 60 61 � � ' TABLE OF CONTENTS •��� � �_ �� �. .�� •�t : •.� � • -��-� .�� �-• • •� .t � •,�. Capital Projects Funds Combining Balance Sheet .............................................D-1 Combining Statement of Revenues, Expenditures and Changes in Fund Balances ..........................................D-2 2000 General Obligation - Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual ......................................D-3 1997 General Obligation - Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual ......................................D-4 Other Capital Project Funds - Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual ......................................D-5 Enterprise Funds Combining Balance Sheet .............................................E-1 Combining Statement of Revenues, Expenditures and Changes in Fund Equity ..............................................E-2 Combining Statement of Cash Flows ...........................E-3 Comparative Balance Sheets - Water Fund ..................E-4 Comparative Balance Sheets - Airport Authority.........E-5 Statement of Revenues, Expenses and Changes in Fund Equity - Water Fund - Budget and Actual ..................E-6 Statement of Revenues, Expenses and Changes in Fund Equity - Airport Authority - Budget and Actual .........E-7 General Fixed Assets Account Group Comparative Schedule of General Fixed Assets by Source.........................................................................F-1 Schedule of General Fi�:ed Assets - By Function andActivity .................................................................F-2 Schedule of Changes in General Fixed Assets - By Function and Activity ............................................F-3 62 63 64 65 66 68 69 70 71 72 73 74 76 77 78 � TABLE OF CONTENTS STATISTICAL SECTION (Unaudited) Table P� General Government Expenditures by Function - Last Ten Fiscal Years ...........................................................I General Revenues by Source - Last Ten Fiscal Years ...........II Assessed and Estimated Value of Taxable Property - Last Ten Fiscal Years ...........................................................III Property Tax Rates - Direct and Overlapping Governments - (Per $100 of Assessed Value) - Last Ten Fiscal Years ........IV Computa.tion of Legal Debt Margin General Obligation Bonds .............. .....................................................................V Computation of Direct and Estimated Overlapping Bonded Debt ................ ..................................................................... VI Lease Revenue Bond Coverage - Last Ten Fiscal Years .......VII Demographics ................ ..............................................VIII Property Value and Construction - Last Ten Fiscal Years ...........................................................IX Top Ten Sales Taxpayers - Selected Industrial Groups.........X Miscellaneous Statistical Data ...............................................XI 80 81 82 83 84 85 86 87 88 89 90 � � , � �: � .: . /�� ����� - � _ � ������ / � \ TOWN OF MARANA December 31, 2002 The Honorable Mayor and Council Town of �Iarana, Arizona The Comprehensive Annual Financial Report (CAFR) of the Town of Marana for the year eaded June 30, 2002 is hereby submitted. The Government Finance Officers Association of the United States and Canada (GFOA) most recendy awarded a Certificate of Achievement for Excellence in Financial Reporting to the Town of Marana for its comprehensive annual financial report for the fiscal year ended June 30, 2001. The Certificate of Achievement is a prestigious national award reco�izing conformance with the hiQhest standards for preparation of state and local government financial reports. To be awarded a Certificate of Achievement, a govemment must publish an easily readable and efficiently or�anized comprehensive annual financial report , whose contents conform to pro�am standards. The CAFR must sarisfy both generally accepted accountine principles and applicable legal requirements. A Certificate of Achievement is valid for a period oi one year only. The Town of �Iarana has received a Certificate of Achievement for the last six consecutive fiscal years, FY 1996-2001. We believe our current report conrinues to confonn to the Certificate of Achievement proD am requiremenu, and we are submitting it to the GFOA. The CAFR has been prepared under the direction of Mr. Roy Cuaron, Finance Director, in coordination with the Town's consultant, Mr. Ron Kovar, CPA and the Town's auditors, Clifton Gunderson LLC. Responsibility for the accuracy of the data, and the completeness and fairness of the presentation including all disclosures, rests with the Town. To the best of our Irnowledge and belief, the data contained in the CAFR is accurate in all material respects, and is reported in a manner designed to present fairly the financial position and results of operations of the various funds and account groups of the Town. All disclosures necessary to enable the reader to gain an understandinQ of the Town's financial activities have been included. The CAFR is presented in three sections: Introductory, Financial and Statistical. The Introductorv Section includes this transmittal letter, a listing of principal Town officials and staff and the Town's organizational chart. The Financial section includes the auditor's opinion on the financial statements and schedules, the general purpose financial statements, footnotes, and required supplemental information and the combining statements and schedules by fund and account aroup, which provides additional detailed information. The Statistical Section includes selected financial and demo�raphic information, generally presented on a multi- year basis to demonstrate trends. -• � THE REPORTLVG EtiTITY A.�� ITS SERVICES Back?round Located in northern Pima County, the Town of Marana is one of the fastest growins communities in rlrizona. The 2000 U.S. Census listed Marana as the fast �rowin� city in Arizona with a population increase in excess 13251 NORTH LON ADAMS ROAD s MA�J�A. !.� 8�t53-472� i� TELEPHONE: (520j 682-3401 � r�: 682-265» of 500%. The official ; esident population increased from 2,162 in 1990 to I�.��6 in 2000. linofficially, the Town's current population is believed to be in excess of 15,000. Straddlin� Interstate 10. vlarana is only 10 miles north of downto�n Tucson and 90 miles south of do���ntown Phoenix. �Iarana's orioinal incorporation covered approximately ten square miies. Todav, the Town boundaries encompass over one hundred square miles. " In its infancy, the Town was primarily a rural, a� community. However. throu�h annexations and planned � the Town is now home to several residential, commercial and industrial developments, includinQ Continental Ranch, SunfIower, HeritaQe Highlands and ContinentaI Ranch Business Park. Legislative authority for the Town of i�iarana is vested in a seven-member Mavor and Council. Voters of the Town directly elect the Mayor. Council-members serve four-year staggered ter,ns. The CounciI fixes the duties and compensation of Town officials and employees, and enacts ordinances and resolutions relatina to Town services, taxes, appropriatin� and borrowing moneys, liceasina and regulating businesses and trades and other municipal purposes. The Town Council appoints the Town Manager who has full responsibility for executing Council polices and administerin� Town operations. Town employees are hired under personnel rules approved by the CounciI. A staff of approximatelv 260 employees is responsible for the functions and operations of the Town government. � The combined financial statements of the Town include all ?overnmental activities, organizations and functions for which the Town is financially accountable as defined by the Goverrunental Accounting Standards Board. Based upon these criteria, the Town of Marana Municipal Property Corporation is included in this report. Services Provided The Town provides a iange of services that include police, water, construction and maintenance of streets and roads and other infrastructure, flood control, low-income housing, recreational activities and culiural events. ECONONIIC CONDITION A1V� OUTLOOK Current Condition The Town of Mazana aga.in demonstrated growth and improvement in fiscal 02. At June 30, 2002, the unreserved, general fund balance was $203M, an increase of 1.4% from the pre� fiscal year. The mere growth in the equity position of the general fund is a testament to sound fiscal management particularly as cities and towns, locally and nationally, struggle with budgetary woes in these di�cult economic times. The Town's economic prosperity and fiscal improvement continue to be fueled bv a strong, albeit, slowinQ local economy, prudent fiscal management and a management phitosophy that fosters economic development opportunities. � As expected, sales tax revenues continue to comprise a majority (61%) of general fund revenues. Retail trade and the construction industry accounted for over $11.3M, or 74%, of total tax re�•enues. Retail trade and construction �ew by 4% and 58%, respectively. The increase in construction tax revenues is largely attributable to an increase in the tax rate from three to four percent. Mayor and Council adopted the rate increase to provide a panial funding solution to the Town's transportation plan. The revenue gro�rth in construction is also consistent with the inerease in single family residential (SFR) permits issued for the year. SFR permits increased by 21 % from the previous year. Modest revenue �rowth amon�st the top ten retailers accounts for the increase in retail trade. Sound fiscal management practices are key to the continuing success of the To�r.. Commencing with the budgetary process and continuin� with montht3y mana�ement reports that monitor and report budget II � r � � � _. . '__::� :. �` r.�. I I �_:=��. variances, the fiscal proc:sses ensure that total spendin� remains within appro��ed bud�etar�� le�•els and «�ithin acailable tinancial resources. The �Iarana Town Council, throu�h the establishment of clear and concise polices on gro�� mana�ement, assures that expansion of the Town boundaries occurs when an economic benefit accrues to the Town and its residents. Further, a pro-business attitude and emphasis on responsive customer service foster an environment that encouranes economic development. The combination of these n;•o factors has been instrumental in the oro« and fiscal prosperity of the Town. Future Economic Outlook The economic outlook for the Town of Marana continues to be very positive. �larana is expected to have very rapid commercial, industrial and residential growth in the next ten years due to the abundance of developable land. Residential growth continues to occur predominately in two distinct areas of the Town. Continental Ranch while nearing build-out, is still home to several si2nificant developments, includinQ Continental Reserve, Sunflower, Silverbell West and Silverbell Place. Similarly, the Dove Mountain area continues to experience growth in HeritaQe Hishlands Quail Crossing, Canyon Pass and Villages at Dove Mountain and Dove Creek. Collectively, the two development areas are planned for over 10,000 homes. With the adoption of the Northwest Marana Reb onal Plan and completion of bank protection along the Santa Cruz River, sionificant residential activity is expected to occur in the northwest quadrant oi the township. In fact, development activity has recently commenced on the Gladden Farms and Vanderbilt Fanns projects. From the commercial perspective, several new business establishments commenced operations in FY 02, including InTown Suites, Lazy K Resort, Jack in the Box and La Parrilla Suiza restaurant. New commercial projects under construction at fiscal year end included WalMart Skate Country, Ina Car Wash and Competition Hobbies. Collectively, these new business entities will si�ificantly enhance the local emplovment and tax base of the Town. Similarly, completion of the Fire Suppression/Security Fencing project at the Marana Northwest Regional Airport is expected to yield substantial economic benefits to the Town. While construction has yet to beein, the Hyatt Regency Resort Project is expected to have a huQe economic impact on the community. Annual tax revenues of at least one million dollars are expected to accrue to the Town from this project. Construction is expected to commence in 2003. In summary, the economic outlook continues to be positive despite a slowing of the local economy, particularly retail trade. The FY 03 budeet reflects modest recurrin; revenue ero�; and, therefore, spendin� levels have been adjusted accordingly. In short, the Town is well positioned to absorb the afiects a slua4ish economy. MAJOR INITIATIVES � Current Year Proiects Fiscal 02 yielded several accomplishments that were consistent with the policy direction set forth by Mayor and Council during the budQet process. Amon; the notab]e achievements were the followin�: III Construction of approximately �8.4vt in ; oad improt-ements to complete and commencz, respecti��e�}�, the Cortaro and Sil��erbell Road projects; said imorovements will increase transportation capacity in the affected areas; Ecpenditures of approximately S92�K for ennancement to the Town's municipal water system, includin� acquisition of water ri�hts that will enable the Town to serve its growing population; � Expenditures of approximately � 1.4M for capital improvements to the Marana North���est ResionaI Airport, primarily for the desien and construction of a fire protection/suppression system that should spur economic development activities �c the area: Commencement of construction activities for park and recreation amenities, includin� the ContinentaI Ranch Nei�hborhood Park and the Santa Cruz River Park; FY 02 expenditures totaled approximate;v S 1.6�1; . Purchase of an inteorated digital dispatch and communications system for the police department, includina automated vehicle locators and remote, in-vehicle report writing equipment (S�90K); Acquisition of vehicles, equipment and macninery totaling approximately � 1.3i�1; all e�penditures are designed to enhance the Town's motor fleet and replace a�ing equipment; Future Year Proiects The Town is committed to improving and increasing service Ievels to its residents and planning for the proper and orderly growth of the community. To that end, the following activiries have commenced or are in the planning staQes for the very near future: :• On-going design and construction of a municipal complex that will provide for the consolidation of services and facilities to better serve the public; : On-going design and consttuction of roadway improvements to increase traffic capacity; $7.4M programmed in FY 03 for such improvemenu; � �' Implementarion of the recently adopted Nonhwest Marana Regional Plan in anticipation of expected deveIopment in the northwest quadrant of the township; = On-goin� design and construction of infrasu improvements to the Marana Northwest Regional Airport to facilitate economic deveIopment in the area; =' Master planning, design and construction of Parks and Recreation amenities, to include 40 miles of multi- use trails system, including 21 miles of the Juan Batista Historic De Anza Trail, and a 48 acre disa ict park that will feature a public library and a muIti-sports complex; FIl�iAi�'CL4L I�i FORVIATION Management of the Town is responsible for estabIishina and maintaining an internal control structure designed to ensure that the assets of the Town are protected from loss, theft, or misuse and to ensure that adequate accounting data is compiled to allow for the preparation of financial statements in conformity with generally accepted accounting principles. The internal control structure is designed to provide reasonable, but not absolute, assurance that these objectives are met. The concept of reasonable assurance r�cognizes that: (1) the cost of control should not exceed the benefits likely to be derived; and (2) the valuation of costs and benefits requires estimates and judgments by mar,aoement. All interna] control evaluations occur within the above framework. We believe the Town's internal accounting controls adequately safeguard assets and provide reasonable assurance of proper recording of financial transactions. The policy of the Town of 1�Iarana provides that the Town Council shal] adopt the annual budget prepared by the Town Manager and senior staff. This budeet is re��ewed by the Town Council and is formally adopted by the passage of a budget resoIution. The Town ManaQer is authorized to transfer bud�eted amounts bet�•een departments �-ithin any fund; however, any revisions that alter the tota] expenditures of any fund must be approved by the Town Council. N I — , Revznue and expenditure reports that compare bud;et versus actual results are produced monthly and are distrouted to senior stafi and others upon request. Gener3l Fund The Gzneral Fund is used to account for expenditures of traditional eovemmental services as well as financial resources other than those required to be accounted for in other funds. Gene-al Fund revenues totaled �2�,138,756 in fiscal 02, an increase of 3�.26% from FY O1. General Fund inc; esses (decreases) o��er the last year are shown in follo�ving tabulation: Revenue Source Taxes Other Agencies Licenses, Fees & Pe.�mits Fines, Forfeitures & Penalties Interest Income Other Increase/ (Decrease) from 2001 2,644,268 1,375,192 2,950,826. {6,083) (644,186} 232,693 Amount 15,258,119 2,971,917 5,379,899 353,361 661,948 513,512 Percent of Total 60.70% 11.82% 21.40% 1.41% 2.63% 2.04% Total 25,138,756 100.00% 6,552,710 20.96% 86.13% 121.48% -1.69% -49.32% 82.86% 35.26% The increase in tax revenues is largely at�butable to an increase in the sales tax rate from three to four percent for cons� activity. The rate increase is intended to fund a portion of the Town's master transportation plan and accounted for 46% of the revenue increase. Discountin� the impact of the rate increase, industry revenues grew by 19%, or S600K. Retail sales �ew by nearly S300K, a five percent increase over FY O 1. Other a�ency revenue �ew primarily because of an increase in the per capita distribution from the State of Arizona. Income from licenses, fees and permits increased substantially due to the imposition of impact fees for recreational amenities (parks) and transportarion infrastructure. Collectively, these fees generated nearly �2.OM in fiscal 02. The decrease in interest income.may be linked directIy to a sluggish national economy. The increase in Other Revenues is the result of a development agreement that pro�-ides annual income of �450K to offset a lease obli�ation of a similar amount. General Fund expenditures for general government purposes totaled S 17,030,7� 1 in fiscal 02, an increase of 30.>j% from FY O 1. Inerease (decrease) in levels of expenditures for major functions of the To��n over the preceding year are sho�zn in the foIlowinQ tabulation: V Percent Increase/ (Decrease) from 2001 Function Generai Government Development Services Town Attorney Police Magistrate Court Public Works Parks and Recreation Debt Service/Capital Lease Amount 3,473,934 4, 518, 724 370,720 3,699,901 386,080 2,986,788 1,398,607 1 9 5,997 Percent of Total 20.40% 26.53% 2.18% 21.72% 2.27% 17.54% 8.21 % 1.15 Tota l 17, 030, 751 100.00°/a Increase/ (Decrease) fro �_ 1,001,546 1,875,898 8,614 497,739 81,998 115, 307 415, 884 (11,674) 3,985,312 Percent Increase/ (Decrease) from 2001 40.51 % 70.98% 2.38°0 15.54% 26.97% 4.02°'0 42.32°/a -5.62% 30.55% The dramatic increase in General Government expenditures is due to the lease obligation (�450K) mentioned previously combined with increases in personnel costs for new positions and health care benefits for all employees. The increase in Development Services expenditures may be traced to the Fleet Asset ManaQement division of the deparnnent. Capital vehicle and equipments purchases increased by nearly � 1.3M over FY Ol . The general fund increase for Police, Magistrate Court and Parks & Recreation stems from increased personnel costs associated with nineteen new positions authorized for the respective departments. The new positions reflect the Council's commitment to public safety, customer service and expansion of recreational programs to all residents of the Town. Despite the overall increase in expenditures, the Town's general fund balance increased by nearly 1.4%, again indicating sound fiscal management practices. Capital Proiects Fund Proceeds of the Series 1997 and 2000 Revenue Bonds are accounted for in the Capital Projects funds until improvement projects are completed. During FY 02 majority dedicated to roadway improvement projects. Capital ProjecPfund ba�ances hand at y a end represent primarily cash and ca s h i n v e s t m e n t s. 1 ' r op rietarv/Enterprise Water Fund The Town's enterprise funds, consisting of the «•ater and airport fund, showed a net income, collectively, of approximately $$$p, primarily due to non-operatina re�•enues of �1.1M. FINA� CI_�i, >I_��:�GEI�IENT Debt Administration At June 30, 2002, Marana Municipal Propem Corporation had two revenue bond issues outstanding. The Series 1997 bonds were issued in October 1997 and the Series 2000 were issued in February 2000. At June 30, 2002, the outstanding bond indebtedness for the Series 1997 bonds totaled $6,630,000, while the total bond indebtedness for the Series 2000 bonds „•as S8,^�0,000. The proceeds of the 1997 Series Bond issue «�ere (are) used to finance capital improvement projects, namely desien and construction of major roadways and «•ater s�•stem improvements. The Series 2000 bond proceeds are being used to design and construct a new municipal complex. �'I � l '— ,:: 1� Throu�n the vears, the To��n has entered into numerous capitwl lease a�reements allo«�in� the To�t;� [o acquire asse;; without a major immediate impact on fund balances. The To�« will continue to carefuliv e� the options a�•ailable when acquiring assets, and �i�ill choose the ootion whicn provides the most ., lonQ-ter.n benefit to the Town. Cash �IanaQement The Town o; �Iarana uses a system of consotidated cash mana;ement where cash from all funds are pooled. Cash to �e used for the payment of current expenditures is kept in a mone� market sa�•in�s account. Excess and idle cash is kept on deposit with the State of Arizona Treasurer's Local Governme:�t In�•estment Pool (LGIP). Cash in the LGIP is available upon 24 hour notice and eams a retum comparabie to li.S. ao�-ernment securities. Interest eamed on cash and investments from all funds totaled S9�9,457 in FY 0?, net of oank analysis fees and investment expenses. r- 1-( . Risk l�IanaQement The Tow�n of Marana participates in the Arizona Municipal Risk Retention Pool. linder the Tot��n's Qeneral insurance liability, the Town is required to pay the first �10. 000 per loss per claim or jud�ement, with the Pool coverin� the balance up to �2,000,000. The Town also maintains excess umbrella coverase of 53 The Town's total general liabiIity insurance is thus 55,000,000. y The Arizona Municipal Workers' Compensation Pool was the Town's insurance carrier for worker's compensation durin� FY 02. Various risk con�ol techniques, including employee accident prevention training, are utilized to control the Town's risk exposure. OTHER Ir�OR�•IATION Indenendent Audit The State of Arizona requires a bi-annual audit of the books of account financial records and transactions of all departments of the Town by independent auditors. The Town has elected to have its audit conducted on an annual basis. The firm of Clifton Gunderson LLP has been retained to perform the June 30, 2002 audit. The auditor's report is included in the Financial Section of the repon. Acknowledaments The preparation of the CAFR was made possible by dedication of Mr. Ron Kovar, CPA, Clifton Gunderson LLP, and the entire staff of the Town's Finance department. Mr. Kovar is the Town's consultant and Clifton Gunderson LLP are the Town's auditors. Our sincerest appreciation is extended to all indi��iduals involved in the preparation of the CAFR. We also extend our appreciation to the Mayor and Council for their interest and suppor in planning and conductina the financial operation of the To�m in a responsible and pro�ressive manner. Respectfully submitted. � � r e'��� C� � ` r Michael C. Hein Town Manaoer � , �O` �ll�z'� � L , Roy Cuaron Finance Director � VII 11�iARANA - ���:�� � � ___ � ____ � _ TOWN OF MARANA TOWN CDUNCIL Bobby Sutton, Jr., Mayor Herbert Kai, Vice Mayor Jim Blake Patti Comerford Tim Escobedo Eddie Honea Carol McGorray SENIOR STAFF Michael C. Hein \ Town Manager Michael Reuwsaat \ Assistant Town Manager Roy Cuaron \ Fnance Director Jim DeGrood \ Development Services Administrator Brad DeSpain \ Utifities Director .locelyn Entz \ Town Clerk Dick Gear \ Community & Economic Development Director Daniel J. Hochuli \ Town Attorney Jack Holden \ Building Official Jane Howell \ Human Resources Director Farhad Moghimi \Town Engineer/Public Works Director Joel Shapiro \ Planning & Zoning Directoc.. Dave Smith \ Police Chief Kevin Sweeney \ Technical Services Director Ron Smith \ Parks & Recreation Director Joseph Teta \ Court Administrator James West \ Magisirate � L� TO��`� OF �4:�f�aNA Departmental Or�anization I ?:'U f i 0?� Ai:i�•or ,S Council ToH•n Attorncv Dan Hochuli Ma�istratc Jim V1'cst To�rn A(ana�er �9ichael Hein Assistant To��•n �•lanager i�tichael Reuwsaat Development Services Director James DeGrood Finance Director Roy Cuaron Utilities Director Brad DeSpain Town Clerk Jocel}•n Entz Building Services Director Jack Holden Public ��'or(:s Director Farhad Mochimi Technical Ser��ices Director }ie�•in S�veene�� Community & Economic Dev. Director Dick Gear Human Resources Director Jane Howell Court Administrator Joe Teta Par1:s fi Recreation Director Ron Smith Planning Services Director Joel Shapiro Police Chief David Smith i �i i Certif icate of � Achievement for Excellence � in Flnancial �e orting � Presented to � .�� ��- .� l�- : � �_:� � . � � :� " �.. . .. . - '� �:" 1. ' ,- � � Totivn of Marana, Arizona For its Comprehensive Annual Financial Report for the Fiscal Year Ended June 30, 2001 A Certificate or Acnievement ior Fxcellence in Financial R�porting is presented by the Government Finance Officers Association oi the Uniied States and Canada to government uniis and public employes retirement svstems whose comprehensive annual financial repors (CAFRs) achieve the highest sandarCS in government accounting and financial reporting• � ��� � � a� n� f �ANO A � � , '.' wuo. '� President �� \ �� / �, � o �� V �e\1 r `� arc.co ��� ��� r..xecutive Director X 6 O ' - , . GE NER�AL PURPOSE ��:,� 1 f� 1� 1 ` 1�: i 1 FI��T ANCIAL STATE MENTS ' �� Clifton � Gunderson LLP Certified Pubfic Accountants & Consultants '. '.. ' �� ' �:..: �.� . Independent Auditor's Report Honorable Mayor and Town Council Town of Marana � Marana, Arizona We have audited the accompanying general-purpose financial statements of the Town of Marana, Arizona as of and for the year ended June 30, 2002. These general-purpose financial statements are the responsibility of the Town's management. Our responsibility is to express an opinion on these general-purpose financial statements based on our audit. We conducted our audit in accordance with auditin� standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examinin„ on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinions. In our opinion, the general-purpose financial statements referred to above present fairly, in all material respects, the financial position of the Town of Marana, Arizona as of June 30, 2002, and '_. the results of its operations and cash flows of its pr�prietary fund types for the year then ended, in conformity with auditing standards generally accepted in the United States of America. In accordance with Government Auditing Standards, we have also issued a report dated December 6, 2002 on our consideration of the Town's internal control over financial reportinQ and our tests of its compliance with certain provisions of laws, regulations, contracts, and grants. That report is an inte�ral part of an audit performed in accordance with Government Audiring Standards and should be read in conjunction with this report in considering the results of our audit. � ' ' Our audit was performed for the purpose of formin� an opinion on the general-purpose financial statements taken as a whole. The combining and individual fund and account group financial statements and schedules listed in the table of contents are presented for purposes of additional analysis and are not a required part of the �eneral-purpose financial statements. Such information has been subjected to the auditing procedures applied in the audit of the general- purpose financial statements and, in our opinion, is fairly stated, in all material respects, in relation to the general-purpose financial statements taken as a whole. The information included in the introductory and statistical sections is presented for purposes of additional analysis and is not a required part of the general-purpose financial statements of the Town of Marana, Arizona. Such additional information has not been subjected to the auditin� procedures applied in our audit of the general-purpose financial statements and, accordin�ly, we express no opinion on such information. LL� Tucson, Arizona December 6, 2002 n:ii�c+ in 13 n:itr> :�nd «'asnin<•ton. DC .� � � ��t«�a��a�e� H m _ X W � Zwa � (JJ � ¢ f � Q Cw�cv UF-o zg�N Q O 8� � p Q G � O?Z� Zm¢ 38�n O W H � F- � Z � LL J � � - � N � O � ~ % ` . -^ p ,� 10 O P �' H m� . U d j Z � .L p ? y y �7 � N �Ol ��' . < 7 T d C N T N O N L �J � `� �� j� r o W m x z '° a � � O � v �v E � v m ^` m w � _ m`-p u v �2 E� mm E vvm�a Q c ~ cc �°'d� �]vJ i �- ?3iri>�y°Oi�a ^ m � �O� w�'v,�u�, '�Vi� c '� � y� d3 °-p a� Z � c� � �' Z c� °' nv d� vw� � y.. at m� E m�-5 c y > >�� c � i — � u a�a � o a y °' f U �, y a.."� y�,� `oH� � i m > -_ `o`oo �— � a, xo ow a,— w c?'Fd �� v"'e—g__•-�y�m ��¢ 0� v O �� �� G' a C m v N w U � '._ W N o a a � � j �� C a N N> N C Of �� W � S m D�Or x d G` � b q>>� a � � � � O I t O Q .a � c L N N 0� rp � a� � J h- w v� N 2 V 4— y a� " �0 m O O W p� m J c J �U Ga �� F- �-` 4• � c a N� a� 'O � J O y '° � a d� O � v U U E E a x.� < ,., � o� p a n o c� � C¢¢ `c p�� < O C U_O¢ �O¢ QQ LL � G G GCJ� ? U^_� � F H _ J L' O C �$ g ° a � o m v o n � tp v t � N rn n� v� rn � p N o o��' n o rn N rn �ON Nf�p�P ��f�7 fD O O N V fON �f � 00 ��N V n Q O NN� Of0 N (O[70 h 01 ONmC In O NO O W � l7 � 1� .- O O N � 1A O I� N O f0 (7 1n � O .- t0 O � f� .- � � t0 .- N `-' •- N � f0 � � � � fD0 I��nO1n Oi�m O t7 � �in tD�( �n � mN O OiO� �O f0 �. N� � NN��OU7 c7^ N � pj m V Iri�jN � N O.N O N O Of� fp (7 [V O.- N h N� p� � N �O O� c7 �u� coa � �n�o o, w rn m�ov m�� o rnv n rn oi - � �: o �.- v rn r� o r� � �o to t� .- r o oi n � .- .- !� � N � N V I� � � � � N N h 1� 1� I� � O O O O O �1 I 1 � I I 1 I I O � I O I I O I O I I I. I I 1 1 I I � -- c m m �o �o � � � � c v a v v N N N N N N � N � N iii i�ii iii i�� iiii i iim iii ii �� c� c� ri ri c� � y � � M O � �D O�p� O O1 f� O1 h (O W t� 1� O �O m � .- t9 N 1� I I 1 I� I� I I I I � � �� N I N . � N i I I I I 1 � � � � �- N N �D m � N � � � m � � 0 � � � � � � ' M N 1� tD � tD �^ 1n lD V m N p'� �^ O � 1�0 I�O ID ' � � I 1 I I N I� N� � . I I � �' I�.� n I 1 1 I i I � I � � rn rn � N O f9 N c7 In ^ n ^ � w rn f» � �I � � � r� r� n n n m �� rn a rn I � I I I i I I N I 1 I N � 1 1 I I I� 1 I I 1 N I I I N N O O O O O � ^ ' �I � � � ! � N N OJ I � C m N f� Qi m m �' rn o) Nr� I 8 rn � 8 0 ! I I I m i� I N I I I � N� I I N I I I I 1 N I� � � N � v N M Q � � � I ^ ^ � � O l7t�OM I�I N� NI m t0 m f� tD O � n O. [�'J � W O v � O 01 � t9 �� � ��p�� I I 1 I I Ni �p I�I � I I I � I I�I � N � ^ �1 f� C N �Y I (7I V m � � C I f/� (7 C y) i M� r � � i N� N N n � ' I fA W r U W � c � O N � 7 N � O C F- � O N � O N I m � J p � E m d N d ~ 7 � O � C � q U � y adQ `w a � X LL T � � m .i� N� 'C �. a� d Q j C p. � W � � �a U � d d � U d � � � m� 'V C d � W a> W C �j� Q E r d � > C O � � LL � N C � c E 0 � U c C � d c EN 0 0 a O d � � �� �� �� ��� /\ � u TOWN OF MARANA, ARIZONA COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES ALL GOVERNMENTAL FUND TYPES - EXHIBIT 2 Year Ended June 30, 2002 Special Debt Capital Genera� Revenue Service Projects ' Totais ' (Memorandum Only) 2002 2001 REVENUES Taxes $15,258,119 $ - $ - $ - $15, 258,119 $12, 613.851 Otheragencies 2,971,917 1,669,986 - 7,094,807 11,736,710 5,264,506 Licenses, fees and p�mits 5,379,899 - - - 5,379,899 2,537,428 Fines, forfeitures and penalties 353,361 8,713 - 362,074 359,444 Interest 661,948 647 740 296,152 959,487 2,021,145 Other 513,512 54,456 - 345,220 913,188 381.10� Total revenues 25,138.756 1,733,802 740 7,736,179 34,609,477 23,177,479 OTHER FINANCIAL SOURCES Lease purchase proceeds 591,300 - - - 591,300 Transfers from other funds - 226,496 2,033,879 6,419,370 8,679,745 4,495.949 Total other financial sources 591,300 226,496 2.033,879 6,419,370 9,271,045 4,495,949 Total revenues and other financial sources 25,730,Ob6 1,960,298 2,034,619 14,155,549 43,880,522 27.673,428 EXPENDITURES Current operations General government 3,473,934 46,730 - - 3,520,664 2,502,g1g Development and planning services 4,518,724 - - 4,518,724 2,642,g26 Town attorney 370,720 - - Police - 370,720 362,106 3.699,901 370,410 - - 4,070,311 3,721,889 Magistrate court 386,080 - - - 386,080 304,082 Publicworks 2,986,788 - - - 2,986 2,871,481 Parks andrecreation 1,398,607 - - - 1,398,607 982,723 Community development - 305,75p - 305,750 404,839 Debt service - Principal retirement 190,527 - 1,250,000 1,440,527 1,390,288 Interest 5,470 - 804,323 - 806,793 813,932 Fscal agent fees/bond issuance costs - - 3,500 - 3,500 3,�pp Capital improvement projects - - - 14,100,119 14,100,119 7,612,744 Total expenditures 17,030,751 722,890 2,054,823 14,100,119 33,908,583 23,613,328 OTHER FINANCIAL USES Transfers to other funds 7,368,752 1.202,583 - 108,410 8,679,745 4,495,g4g Total other financial uses 7,368,752 1,202,583 - 108,410 8,679,745 4,495,949 Total expenditures and other financial uses 24,399,503 1,925,473 2,054,823 14,208,529 42,588,328 28,109,277 Excess {deficiency) of revenues and other financial sources over (under) expenditures and other financial uses 1,330,�53 34,82� (20,204) (52,980) 1,292,194 (43�,849) FUND BALANCES, BEGINNING 20,145.804 12�,184 1,033,179 8,849,725 30,153,892 31.569,21� Residuai eauitytransfers out (1,028,389) - - (816,595) (1,844,984) (g7g,q74 ) FUND BALANCES, ENDING �20,447,968 5 160,009 $1,012,975 $ 7,980,150 �29,601,102 S30,153,892 See notes to combined financial statements. - 3 COMBINEO STATEMENT OF REVENUESAEXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL - ALL GOVERNMENTAL FUND TYPES - EXHIBIT 3 Year Ended June 30, 2002 REVENUES Taxes Other agencies Licenses, fees and permits Fines, forfeitures and penalties Interest Miscelianeous Totalrevenues OTHER FINANCIAL SOURCES Bond proceeds Lease purchase proceeds Transfers from otherfunds Total other financial sources Totai revenues and other financial sources EXPENDITURES General Actual Budget (a) Varianc $15,258,119 $14,465,000 $ 793,119 2,971.917 2.947,040 24,877 5,379,899 2,276,950 3,102,949 353,361 405,000 (51,639) 661,948 1,483,500 (821, 552) 513,512 505,000 g,5� 2 25,138,756 22,082,490 3,056,266 591,30� - 591,300 591,300 - 591,300 25,730,056 22,082,490 3,647,566 Current operations General government 3,473,934 3,646,661 (�72,727� Development and planning services 4,518,724 3,808,377 710,347 Town attorney Police 370,720 357.000 13,720 Magistrate court 3 3,973,231 (273,330) Public works 386,080 439,925 (53,845) Parks and recreation 2 1,330,795 1,655,993 1,398,607 1,347,228 51,379 Community development _ Debt service - - Principal retirement 190,527 253,800 (63,273) Interest 5,470 Fiscal agent fees/bond issuance costs - 5,470 Capital improvement projects _ - Total expenditures 17,030,751 15,157,017 1,873,734 OTHER FINANCIAL USES Transfers to other funds 7,368,752 6,925,473 443,279 Total expenditures and other financial uses 24,399,503 22,082,490 2,317,013 Excess (deficiency) of revenues and other financial sources over (under) expenditures and other financiai uses 1,330,553 - 1,330,553 FUND BALANCES, BEGINNING 2014$ 8 � _ 20,145,804 Residual equity transfers out FUND BALANCES, ENDING (�,o2s,sss� - �i,o2a,sss) S 20,447 968 5 - S 20.447,968 Special Revenue Actual Bud et a Variance $ - $ - $ - 1,636,943 2,109,085 (q72, � q2� �� - 647 54,456 - 54,456 1,692,046 2,109,085 417,039) 226,496 1.235,268 1,008,772 226.496 1.235,268 (1.008,772) 1,918.542 3,344,353 1,425,811 4&,730 = 46,730 370,410 418,900 (48,490) - 2,435,453 (2,435,453) 275,482 490,000 (214,518) 692,622 3,344,353 (2,651,731) 1,202,583 - 1,202,583 �� 3,344,353 1,449,148 23,337 - 23,337 , O°.2�2 - 99,252 $ 122.�89 � - � 122,589 (a) The Town's budget included an additionai 572�,000 for revenues and $8�3,gq5 for expenditures for water enterprise and airport authority activities that are not inciuded in this statement because these activities are proprietary in nature. , _ 5 , Debt Service Capital Project Actual Budget {a) Variance Actual Budget (a) Variance $ — $ — $ — $ — $ — $ — — — — 7,094,807 11,957,465 (4,862,658) 740 — 740 296.152 — 296,152 — — — 345,220 — 345,220 �� — 740 7,736,179 11,957,465 (4,221,286) — — — — 15,000,000 (15,000,000) 2,033,879 2,041,130 (7,251) 6,419,370 4,755,498 1,663,872 2.033.879 2.041.130 (7.251) 6,419,370 19,755,498 (13,336.128) 2,034,619 2,041,130 (6,511) 14,155,549 31,712,963 (17,557,414) 1.250.000 801,323 3,500 2,054,823 1,2�v0,000 785,523 5,607 2,d41,130 15,800 (2.10� 13,693 14,100,119 40,939,125 (26,839,006) 14,100,119 40,939,125 (26,839,006) ' — — 108,410 1,235,268 (1,126,858) 2,Ob4,823 2,041,130 13,693 14.208,529 42,174,393 (27.965,864) ��� — (2�,2�4) (52,980) (10,461,430) 10,408,450 1,033,179 — 1,033,179 8.849.725 10,461,430 (1,611,70�) — — — (816, 595) — (816, 595) $ 1,012,975 � — $ 1.012,975 $ 7,980 150 $ — $ 7,980.1 b0 See notes to combined financial statements. 6 TOWN OF MARANA, ARIZONA COMBINED STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND EQUITY — ALL PROPRIETARY FUND TYPES — EXHIBIT 4 Year Ended June 30, 2002 OPERATING REVENUES Current use charges Other Total operating revenues OPERATING EXPENSES Materiai, supplies, and other expenses Depreciation expense Total operating expenses Loss from operations NONOPERATING REVENUES Other agencies Total nonoperating revenues NET INCOME (LOSS) DEFICIT, BEGINtaING DEFICIT, ENDING CONTRIBUTED CAP(TAL, BEGINNING Residual equity transfers in CONTRIBUTED CAPITAL, ENDING FUND EQUITY, ENDING Proprietary Totals Fund Types (Memorandum Only) Enterprise 2002 2001 $ 877,567 $ 877,567 $ 676,955 97,428 97,428 79,373 974,995 974,995 756,328 1,012,697 1,012,697 923,922 212,295 212,295 205,144 1,224,992 1, 224,992 1,129, 066 (249,997) (249,997) (372,738) 1,130,301 1,130,301 — 1,130,301 1,130,301 — 880,304 880,304 (372,738) (1,240,202) (1,240,202) (867,464) (359,898) (359,898) (1,240,202) 5, 030,189 1, 844, 984 6, 875,173 � 6,515,275 5,030,189 4,050,715 1,844,984 979,474 6,875,173 5,030,189 $ 6,515,275 $ 3,789,987 See notes to combined financial statements. _� � Q � W � a � A. w O � � � Q � F U Q' m r �7 � � � �U � F O �W�" � � � � � Q � Lil � � � �-.7 � F N N .'. ^' � CC � � 7 � � � � r a' £ �' � -- s � � ¢ � � � y a � �i R r a � W � �' a E=� q x F °J � a � � � y H � C � � U � � R � � � . q { b t � � � ti � � f t U � ss�s�sa°so s a, v-, v-, oo .� o 0 0o v� �o [� oo [� t� [` [� [� v'� �n d; 0 0 ,= ,-, .-. .-, -, .-� � ; �o t� oo ,� ,� ,�-� t� c, r o N o0 � ct N O� M O�O O� �t N l'� O� O^ [^[' O N l � �� O O� v�1 O N v�i M c�+'� ,-� rn o0 0o c� rn rn r�o v N M N� Ir O� N�O O�O M M M M M M�F ��A � � > > � ��� �o t� ,-• �. i o0 0o r t� -� �o � oo �n m cv c� oo � o � � � � � rn � � � � ryv��n�n����r• vi �n �n vi vi v� in �n v� v; O l� O c'� v� � p rn N l� 01 M� O� M[� vl � O N M�D �O �t M� vl vl N V�O o0 .--� M�O O V o�0 7 M M M'cr �Y � Vl Vl ��O �O M N M N 00 00 V'1 O M vl � 00 v1 CA � O G� N O �n O �O N L? r) � v1 O^ 00 � � � � � � � � � � � � � N N N N � N N o0 00 O M M l`� N v) oo O O� c+� l� d' N��O h l� �D N O� N N M �O M M�O 01 �J M—+ N M O�. 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O1 O1 O O 01 O� T� O� J-�i � O� O� O O O� O� O� � N ¢ a � N o�0 � C�� �� N-M-+ O� ��n N� O� �n --i N�D o0 O O��� O--� N� v�'� 0�0 � �^+ ��--� N N N N N N N � O\ N O� .-� � �O �O �O N :n � M M V'1 �O Vl 00 �O T l� M �O <--i t/"� --� O� �O �O O� .� O'" 4 Vl �O l� ,00 O� 00 00 00 00 � Ri � � � � � � U q ,�, ��ssss��o s° p N O�n Q� � O� O o0 v� cC V'> N� N N�n U M�O �O ❑ C v1 vi v� vi v1 vi v) �O �O �O j O GZ O� O� O� O� G� O� O� O� O� O� � i"1 a .� � � �M O N � � N � � q N V) M� V--� �D O� 00 O ��n O N tV o0 r- O--+ N ������ N N N N N d ~ M O l� 00 00 V Cf; M O O ,�, � 'O �� O� Vl �O v1 O O l� c'r1 a� O� O� O� t� �O �� l� �O O e� � � O l� oo O m t O O� O N � O iG ;•� ���� N N N N N�M w F Q ��„ � 0�0 M[� � M M l� N l� p �O �t Vl �U [� N �D O O� O v v� --' O� O O o0 �n E"� �i U ~ � .�.i � � .'^..i �..i u � v O U rn000�nc���ooc�r � �, O oo v'� N d l� t� t� N �, O �O � Q^ \O � � v� .—� .-r ���� N oo O�� 00 O� N ,� � P. �A \O 00 O�--� N V�O 00 O C p� --� --i —i N N N N N N c+� Q � F [� oo O� O� N M h�O � O� O� O� O O O O O O � � � � � � '"� N M v"� ii,>"o,rnrna�SSgo �-+ '-+ �--� �--� N N N N N N � H ° z � � U v .� L � U � � w b � � � a � � N � .`° .� � � � o: � cd C oi N ce � � � � � U � � � ,�" �" � Q '� i-. � N 118 Exhibit D-9 PIMA COUNTY ASSESSED, LIMITED AND FULL CASH (SECONDARY) VALUE OF TAXABLE PROPERTY Last Ten Fiscal Years ( in thousands) Fiscal Year 1996-97 Primary 1996-97 Secondary 1997-98 Pritn�ry 1997-98 Secondary 1998-99 Primary 1998-99 Secondary 1999-00 Primary ]999-00 Secondary 2000-01 Prunary 2000-01 Secondary 2001-02 Primary 2001-02 Secondary 2002-03 Primary 2002-03 Secondary 2003-04 Primary 2003-04 Secondary 2004-OS Primary 2004-OS Secondary 2005-OS Prunary 2005-06 Secondary Net Assessed Va1ue 3,208,291 3,247,512 3,468,269 3,700,218 3,682,397 3,852,574 3,853,630 4,000,624 4,111,664 4,236,070 4,361,493 4,491,395 4,669,336 4,835,561 5,022,474 5,221,271 5,412,550 5,620,156 5,849,549 6,050,950 Limited and Full Cash Values (1) 30,042,'703 30,433,265 32,144,456 34,305,592 33,930,287 35,297,284 32,801,718 33,893,530 34,898,941 35,819,691 37,257,92 I 38,1J6,337 39,908,791 41,109,997 42,927 44,423,165 46,754,009 48,474,537 50,631,267 52,335,111 Ratio of Net Assessed to Full Cash Value 10.68% 10.67% 10.79% 10.79% 10.85% 10.91% 11.75% � �.80%n 11.78% 11.83% 11.71% 11.76% 11.70% 11.76% 11.70% 11.75% 11.58% 11.59% 11.55°�0 11.56% (1) Limited value is the basis for primary taxes and annual changes therein are restricted by statute; Full Cash Value or Secondary Value approximates market value. 119 E�chibit D-10 PIMA COUNTY COMPARATIVE NET VALUATIONS AND TAX RATES Per $100 Assessed Value ($ Amounts of Valuation expressed in thousands) FY 2005-06 (Taa� Year 2005) FY 2006-07 (Ta�c Year 2006) 7urisdiction Valuation Rate Valuation Rate State of Arizona $ 5,849,549 $0.0000 $ 6,467,202 $0.0000 Pima Countv General Fund - Primary 5,849,549 4.0720 6,467,202 3.8420 Debt Service - Secondary 6,050,950 0.7150 6,869,955 0.7150 Free Library - Secondary 6,050,950 0.2575 6,869 0.3675 Total County- Primary 5,849,549 4.0720 6,467,202 3.8420 Total County - Secondary 6,050,950 0.9725 6,869,9.5_5 1.0825 Grand Total Education Assistance 5,849,549 F1ood Control District - Secondarv 5,323,433 Fire District Assistance - Secondarv 6,050,950 Pima Community Colle�e District 5.0445 0.4358 0.3746 0.0420 Primary 5,849,549 1.0930 Secondary 6,050,950 0.2184 Total 1.3114 Central Arizona Water Conservation District Secondary 6,050,950 Ciues 8c Towns City of 'Ilzcson Primary 2,641,420 Secondary 2,722,916 Total City of South Tucson Primary 17,690 School Districts Unorganized - Primary 7,574 Tucson Unified (District #1) Primary 2,570,965 Secondary 2,650,489 Total 0.1200 0.3469 0.8895 1.2364 0.2383 1.8U90 6.4327 1.4502 7.8829 120 6,467,202 6,113,953 6,869,955 4.9245 0.0000 03746 0.0415 b,467,202 1.0570 6,869,955 0.1945 1.2515 6,869,955 0.1200 2,839,163 0.3411 3,016,231 0.8846 1.2257 19,000 0.2383 9,370 1.7394 2,782,666 2,951,009 5.9922 1.3935 7.3857 (continued) Exhibit D-10 PIMA COUNTY COMPARATIVE NET VALUATIONS AND TAX RATES Per $100 Assessed Value ($ Amounts of Valuation expressed in thousands) (continued) FY 2005-06 (Tax Year 2005) FY 2006-07 (Tax Yeaz 2006) Jurisdiction Valuation Rate Valuatian Rate Mazana Unified (District #6) Primary $ 482,599 $4.1055 $ 555,272 $3.8618 Secondary 501,025 1.9936 593,167 2.0499 Total 6.0991 5.9117 Flowing Wells Unified (District #8) Primary 166,660 4.7645 176,501 4.5715 Secondary 171,730 2.3587 184,631 2.2962 Total 7.1232 6.8677 Amphitheater Unif'ied (District #10) Primary 1,077,676 4.2235 1,176,348 4.1240 Secondary 1,115,617 2.2023 1,253,085 1.9)53 Total 6.4258 6.1193 Sunnyside Unified (District #12) Primary 321,085 4.2287 345,217 5.6887 Secondary 333,316 4.4195 368,703 3.4642 Total &.6482 9.1529 Tanque Verde Unitied (District #13) Primary 139,891 4.2549 155,295 4.0917 Secondary 145,123 1.5436 169,903 I.3889 Total 5.79R5 5.4806 Ajo Unified (District #15) Primary 14,166 4.4994 14,851 4.4929 Secondary 15,149 0.0000 15,767 0.0000 Total 4.4994 4.4929 Catalina Fcx�thills UniYied (District #16) Primary 461,269 4.3723 504,862 43099 Secondary 477,762 2.4b99 528,079 2.4329 Total 6.8422 6.7428 Vail Elementary (District #20) Primary 254,909 4.6353 300,483 4.6184 Secondary 266,357 2.1157 324,978 2.0848 Total 6.7510 6.7032 (conlinued) 121 Exhibit D-10 PIMA COUNTY COMPARATIVE NET VALUATIONS AND TAX RATES Per $100 Assessed Va1ue ($ Amounts of Valuation expressed in thousands) (continued) FI' 2005-06 (Tvc Year 2005) FI' 2006-07 (T� Year 2006) Jurisdiction Valuation Rate Valuat�on Rate Sahuarita Unified (District #30) Primary $ 115,452 $4.5611 $ 174,384 $4.2452 Seconclary 121,793 3.5884 183,014 3.4893 Total 81495 7.7345 San Fernando Elementary (District #35) Primary Secondary Total Empire Elementary (Disuict #37) Primary Secondary Total Continental Elementary (District #39) Primary Secondazy Total Indian Oasis Unitled (District #40) Primary Secondary Tot�tl Redington Elementary (District #44) Primary Secondary Total Altar Va11ey Elementary (District #51)* Primary Secondary Total 808 3.7121 812 0.0000 3.7121 4,783 8.0930 5,089 0.0000 8.0930 204,154 1.8090 209,707 0.3442 2.1532 1,268 0.0000 1,268 0.0000 0.0000 1,143 4.8856 1,146 0.0000 4.8856 25,146 5.2536 26,106 1.0071 6.2607 818 3.748,1 832 0.0000 3.7481 4,988 8.4864 5,489 0.0000 8.4864 236,964 1.7394 249,038 0.3288 2.0682 1,182 0.0000 1,183 0.0000 0.0000 1,219 4.8853 1,339 0.0000 4.8853 26,781 4.7765 28,088 0.9931 5.7696 *Formerly known as the Mary E. Dill School District 122 E�ibit D-11 Fiscal Year 1996-97 1997-98 1998-99 1999-00 Z000-01 2001-02 2002-03 2003-04 2004-OS 2005-06 PIMA COUNTY HISTORICAL COLLECTIONS - HOTEL EXCISE TAX, CAR RENTAL SURCHARGES AND RECREATIONAL VEHICLE TAX Last Ten Fiscal Years (Amounts in thousands) Car Recreational Hotel Excise Rental Vehide T� (t) Surcharges (2) Tax (3) $ 1,794 $ 1,340 2,378 1,385 $ 182 2,438 1,396 217 2,625 1,477 213 2,824 1,557 199 2,495 1,377 190 2,536 1,436 195 2,717 1,277 209 2,R85 1,595 200 5,212 1,589 214 (1) Tax increased from 1% to 2% January 1, 1997; the addiUonal 1% can only be used for County sports facilities. In January of 2006, the tax increased from 2% to 6%, of which only 34% can be used for sports facilities. (2) Car rental surcharges increased from $2.50 to $3.50 per rental contract July 1, 1996. Usage is restricted to County sports facilities. (3) Recreational vehicle t�vices apply at the rate of $0.50 per vehicle per night and became effective July 1, 1997. Usage of this taY is limited to Spring Training activifies. Source: Pima County Finance and Risk Management Department 123 E�ibit D-12 PIMA COUNTY STREETS AND HIGHWAYS REVENUES Last Ten Fiscal Years (Amounts in thousands) Fiscal Year 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-OS 2005-06 Amount 30,412 33,370 39,535 47,699 48,317 47,071 48,072 51,334 53,878 56,937 Source: Pima County Finance and Risk Management Department 124 STATISTICAL SECTION REVENUE CAPACITY: The revenue capacity information is intended to assist users to understand and assess the factors affecting a government's ability to generate its own-source revenues. The presentation here is not limited to property tax revenues, but certain other revenues are presented to comply with debt disclosure requirements, e.g., hotel taxes, car rental and RV taxes and street and highway revenues. EXHIBIT B �ORTIZATION SCHEDULE � !"'>'s' .ReferBnces In the sheded eree are lor Lender's use only and do not limit the appli Any Hem ahove containing "'""' has been omitted du 7CrO1Ner: Town ot Marane Lender: F'�._ of ihis documeni to any perticular loan or Item. ThC S�OCkmB�'9 6811k M8/8na OtfiCe 11853 W. Marana Rtl. P.O. Box 247 Marana, AZ 85653 ','��"sDiabursemenl Dpte: February i3, 2006 Repayment ScheAule: Installmeni ':.%j;.i:�' Interest Re1e: 4.100 Calculalion Method: 365/360 U.S. Rute - ��t;: : Paymenl Paymenl Paymenl Interest Pdncipa� Remaining Numh�r Date Amount Paid Paid Balance ._.._. _....----- _.--.—_-...----- — _'"=---_=---�— -- � 06-01-2Q06 11,173.72 2,465.49 8,708.23 191,737.88 2 09-01-2Q06 11,173J2 2,008.99 9,164.73 182,573.15 3 12-01-2006 11,173.72 1,892.17 9,281.55 773,291.60 200BTJTALS: � 33,521.16 ----�-�--� � 6,966.65 ..,.- �27,154.51 `-- - 4. 03-01-2007 It,f73.72 1,77624 9,397.a8 163,894J2 . 5 06-01-2007 11,173J2 1,77725 9,456.47 154,437.65 B 09-01-2007 11,173.72 i,6tS.1B 9,555.56 144,882.D9 7 12--01�-2007 11,173J2 1.501.5a 9.672.18 135.209.91 � — ------- - -- _.—... .. _ ...------.. _. ......----- -- -- — �� 2007 TOTALS: 44,694,g8 6,613.19 . �.. 38,081.88 ��... �� 8 03-0I-2008 I1.173J2 t,401.30 s,772.d2 125,437.49 9 06-01-2008 11,17372 t,314.3� 9,B59.A1 115,578.08 10 09-Oi-20�6 t I,173.72 1,211.00 9.962J2 105,615.36 11 12-UI-2008 t1,i73.72 i 10,079.13 95,53623 ----- ------- - ----.... .....-----..—__. _ 200e TOTALS: 44,694.BB 5,021.20 39,673.68 12 03-01-2pOS 11,173.�2 979.25 10,194.47 85,34t.76 13 06--01-2009 �t,173.7? 894.19 iD,279.53 75,06223 14 09--01-2009 t1,173.72 7B6.49 10,387.23 64,675.00 15 _� 72-01_2009 11,173J2 67D28 70,503.M14 54,171.5fi � 2009 TOTALS: 44,694.88 � 3,33021 -. ...-- 41,384.87 '----- � . 16 03-0t-20t0 11,�73.78 555.26 10,618.4fi 43,553.10 1 � 06-07-2ptU 11,173.72 456.34 10,717.38 32,835J2 18 09-07-207p 11,173.72 344.05 10,829.57 22,006.05 19 12-0I-20t0 11,17372 228.07 10,9d5.65 11,060.40 �.� � —._.. .._..-- - -- � 2010 TOTALS: 44,694.88 1,58372 43,111.16 � 20 03-01-2011 it,173.72 113.32 11,060.40 0.00 201/70TA1.5: 11,173.72 .._. 113.32 -�-�---- 11,06�.40 � r - — --- --- — ---.. . � T::.TOTALS: 223,474.40 23,02824 200,448.11 � F i : NOTICE: This is an eslimated loan amortization sc Actu amounls may very if payments are inade on diffareni da�es or In different emounls. .. Lh6EPPR0 — -- "--... —. . . .�;:3;? : . �z�.- ... � �• �:�.� ��..s . Coi�.MarYnJllnan5iel5eluiln�n.e�� �oqi.2.On. ��f.o���P�.�..�J .rE C:1:ilYlIH�G�RLFL�AM011TfC 1P-15�N GF_��seuM 7 ' ' ' � TOWN OF MARANA, ARIZONA COMBINED STATEMENT OF CASH FLOWS ALL PROPRIETARY FUND TYPES — EXHIBIT 5 Year Ended June 30, 2002 Proprietary Totals Fund Types (Memorandum Only) Enterprise 2002 2001 CASH FLOWS FROM OPERATING ACTIVITIES , Loss from operations Adjustments to reconcile loss from operations to net cash used in operating activities: ' Depreciation Changes in operating assets and liabilities: , ' S , � $ (249,997) 212,295 (Increase) decrease in accounts receivable (19,057) Increase (decrease) in accounts payable and accrued expenses 6,383 Net cash used in operating activities (50,376) CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES (Increase) decrease in due from other funds (214,425) Increase (decrease) in due to other funds 80,364 Net cash provided by (used in) noncapital financing activities (134,061) CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Increase in accounts receivable Increase in due from other funds Increase in accounts payable and accrued expenses Increase in due to other funds Recognition of nonoperating �revenues Residual equity transfers from capital project funds Residual equity transfers from general fund Principal paid on note payable Purchase of fixed assets Net cash provided by capital and related financing activities NET INCREASE IN CASH CASH, BEGINNING OF YEAR CASH, END OF YEAR (614,734) (724,463) 1,133,874 205,324 1,130, 301 816, 594 1,028,390 (8,800) (2,782,049) 184,437 $ — $ (249,997) $ (372,738) 212,295 205,144 (19,057) 5,476 6,383 (166,942) (50,376) (329,060) (214,425) 98,616 80,364 (26,964) (134,061) 71,652 (614,734} — (724,463) — 1,133,874 — 205,324 — 1,130,301 — 816,594 979,474 1,028,390 — (8,800) (8,800) {2,782,049) (713,266) 184,437 257,408 5 — � — See notes to combined financial statements. 8 TOWN OF MARANA, ARIZONA NOTES TO COMBINED FINANCIAL STATEMENTS June 30, 2002 NOTE 1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: A. General tatement The Town of Marana (the Town) was incorporated on March 21, 1977, under the provisions of the Constitution of Arizona and the Arizona Revised Statutes. The Town operates under a council-mayor form of government. All funds and entities related to the Town that are controlled by the Mayor and Council are included in the annual financial report. Control is determined on the basis of budget adoption, taxing authority, and the ability to significantly influence operations and accountability for fiscal matters. The Town provides a full range of services including general government, development and planning, legal, public safety, public works, and parks and recreation services. The accounting policies of the Town conform to generally accepted accounting principles (GAAP) as applicable to governments. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing accounting and fmancial reporting principles. The more significant accounting policies of the Town are described below. B. �'inancial Renortin Fntitv In accordance with Governmental Accounting Standards Board Statement 14, "The Financial Reporting Entity", these financial statements present the Town and its only component unit, the Town of Marana Municipal Properiy Corporation (MMPC). The MMPC is blended with the Town in these financial statements because the MMPC was established by the Town in order to fund the debt incurred to finance the purchase of the Town hall, various capital projects, and fixed assets used by the water fund. In addition, MMPC only provides services to the Town. MMpC also issues an annual fmancial report, which is available through the Town of Marana's Finance Department. C. $asis of Prec ntatinr� The accounts of the Town are organized on the basis of funds and account groups, each of which is considered a separate accounting entit��. The operations of each fund are accounted for with a separate set of self-balancing accounts that comprise its assets, liabilities, fund equity, revenues, and eapenditures. Government resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled. The various funds are grouped, ui the financial statements in this report, into generic fund types and broad fund categories as follows: —� 9 .. � � ' , , TOWN OF MARANA, ARIZONA NOTES TO COMBINED FINANCIAL STATEMENTS June 30, 2002 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued): C. Basis of Presentation (Continued) C • - ��n - i . .�� •- ' General fund - This fund is the general operating fund of the Town. It is used to account for all financial resources, except those required to be accounted for in another fund. ' Special revenue funds - These funds are used to account for the proceeds of specific ' revenue sources (other than proprietary functions or maj or capital proj ects) that are legally restricted to expenditures for specified purposes. ' , Debt service fund - This fund is used to account for the accumulation of resources for the payment of general long-term debt principal, interest and related costs. , Capital project funds - These funds are used to account for the acquisition or construction of capital facilities being financed from General Obligation Bond proceeds, grants from other agencies, or transfers from other funds. ' ' � ' �_J I' •. - _�. .- T'hese funds account for operations that aze organized to be self-supporting through user chazges. The funds included in this category are the water fund and the airport authority (a new fund established in fiscal 1999 with actual operations beginning in fisca12000) as noted below: Enterprise funds - These funds are used to account for operations that are financed and operated in a manner similar to private business enterprises. The intent of the governing body is that the costs (expenses, including depreciation) of providing services to the general public on a continuing basis be financed or recovered primarily through user charQes. ' _— 10 TOWN OF MARANA, ARIZONA NOTES TO COMBINED FINANCIAL STATEMENTS June 30, 2002 NOTE 1 - (Continued): SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES C. Basis of Pre entation (Continued) G •.� •.� Account groups are used to establish accounting control and accountability for the Town's general fixed assets and general long-term debt obligations. The two account groups are not "funds". They are concerned only with the measurement of financial position. They are not involved with measuxement of results of operations. The following are the two account groups: General fixed assets account group - This account group is established to account for all fixed assets of the Town, other than those assets accounted for in the proprietary fund. Capital outlays in funds other than the proprietary fund are recorded as expenditures of those funds at the time of purchase and are subsequently recorded for control purposes in the general fixed assets account group. General long-term debt account group - This account group is established to account for all the Town's long-term debt and governmental fiznd compensated absences that will be financed from general governmental resources. Long-term liabilities of the proprietary fund are accounted for in that fund. 1 . �/ _.____-•_���:� • ��s, �s�s�iz�:l�1�Si1�l1i[1}� Measurement focus refers to what is being measured; basis of accounting refers to when revenues and expenditures are recognized in the accounts and reported in the financial statements. Basis of accounting relates to the timing of the measurement made, regardless of the measurement focus applied. The Governmental Fund Types (General, Special revenue, Debt ser��ice, and Capital project funds) use a current financial resources measurement focus and are accounted for using the modified accrual basis of accounting. Under the modified accrual basis of accounting, revenues are recognized when susceptible to accrual; i.e., ��hen they become both measurable and available. "Measurable" means the amount of the �ansaction can be determined and "available" means collectible within the current period or soon enouQh thereafter to be used to pay liabilities of the current period, which for the Town is considered to be 60 days after year end. Expenditures are recorded when the related fund liability is incurred. Exceptions to this general rule include principal and interest on general long-term debt which are recorded as fund liabilities when due, and accrued vacation which is recorded when payable from current available financial resources. _ — 11 TOWN OF MARA.NA, ARIZONA NOTES TO COMBINED FINANCIAL STATEMENTS June 30, 2002 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued): D. MeasLrement FocLSBa is of AccoLnting (Continued) The Town reports deferred revenue on its combined balance sheet. Deferred revenue arises when a potential revenue does not meet both the "measurable" and "available" criteria for recognition in the current period. Deferred revenue also arises when resources are received by the government before it has legal claim to them, as when grant monies are received prior to the incurrence of qualifying expenditures. In subsequent periods, when both revenue recognition criteria are met, or when the government has a legal claim to the resource, the liability for deferred revenue is removed from the combined balance sheet and revenue is recognized. Grant revenues are susceptible to accrual if they are earned as expenditures occur. Taxes collected (which include state shared sales taxes, Town sales tax, and county shared auto lieu taxes) and held by both the State of Arizona and Pima County, Arizona at year end on behalf of the Town are also recognized as revenue. All other Governmental Fund Type revenues are recognized when received. , The Proprietary Fund Types are accounted for on an economic resources measurement ' focus using the accrual basis of accounting. Revenues are recorded when earned, including unbilled water services which are accrued. Expenses are recorded at the time liabilities are incuned. The Town's Proprietary Funds apply all applicable Government , Accounting Standards Board (GASB) Statements, as well as the following pronouncements issued on or before November 30, 1989, unless those pronouncements ' conflict or contradict GASB pronouncements: Financial Accounting Standards Board Statements and Interpretations, Accounting Principles Boaxd Opinions, and Accounting Research Bulletins of the Committee on Accounting Procedure. , � ' � ' -- 12 TOWN OF MARANA, ARIZONA NOTES TO COMBINED FINANCIAL STATEMENTS June 30, 2002 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued): E. Bvdgetarv C'nntr�i The voters of the State of Arizona, on June 3, 1980, approved an expenditure limitation that is applicable to all local governments. This limitation, based on expenditures of the 1979-80 fiscal year, restricts the growth of expenditures based on a factor of increases in population and inflation. Certain expenditures are held to be excludable. The limitation is set by the State Economic Estimates Commission prior to April 1 of each year for the following fiscal year. As allowed, the voters of the Town of Marana, on May 15, 2001, approved an alternative expenditure limitation - home rule option to be applicable to the Town• This alternative expenditure limitation is free from any ties to the state imposed limita.tions and is in effect for four consecutive yeazs begimm�g with the fiscal year ended June 30, 2002. T'his limitation proyides for the Town to allow the Mayor and Council to adopt an annuai expenditure limitation each year with no expenditures held to be excludable. Therefore, the annual expenditure limitation equals the adopted budget. The Town establishes its fiscal year as the twelve-month period beginning July 1. The departments submit to the Town manager a budget of estimated expenditures for the ensuing fiscal year. The Town manager and each department head meet to discuss mutually acceptable changes for the estimated expenditures for that department after which the Town manager subsequently submits a budget of estimated expenditures and revenues to the Town Council. Upon receipt of the budget estimates, the Town Council will hold a public meeting to obtain taYpayer comments. Concurrently, a copy of the budget estimates is published in a local newspaper. The Town Council is prevented from legally enacting the budget through passage of a resolution until 15 days have passed after the date of the public meeting. Prior to July 1, the budget is legally enacted. The Town manager is authorized to transfer budgeted amounts between any departments or any funds; however, any revisions that reallocate budgeted amounts from the budget line items labeled "contingency" must be approved by the Town Council. Budgeted amounts are as originally adopted and all appropriations lapse at year end. All budgets are adopted on a basis consistent with generally accepted accounting principles except the enterprise funds, for which depreciation is not budgeted and the acquisition of capital assets are budaeted as expenditures. — 13 TOWN OF MARANA, ARIZONA NOTES TO COMBINED FINANCIAL STATEMENTS June 30, 2002 NOTE 1 - SUMMARY OF SIGNIFTCANT ACCOUNTING POLICIES (Continued): E. Budget� Control (Continued) The Combined Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual - All Governmental Fund Types presents a comparison of budgetary data to actual results of operations for which annual operating budgets are legally adopted. A budgetary basis to GAAP basis reconciliation of the special revenue funds, of which the 2001 Community Development Block Grant, CJEF Court Fund, and Fill The Gap - Courts Funds were not budgeted, follows: Budgetary Unbudgeted GAAP Basis Fund Basis Actual Acival Actual Total revenues and other financial sources $1,918,542 $ 41,756 $1,960,298 Total expenditures and other fmancial uses 1 30,26g 1,925,473 Excess of revenues and other fmancial sources over expenditures and other financial uses F. Encumbrances � 23,337 14 $ 34,825 Encumbrance accounting, under which purchase orders, contracts, and other commitments for the expenditure of monies are recorded in order to reserve that portion of the applicable appropriation, is not employed as an eatension of formal budgetary integration in the general fund and special revenue funds. = 14 TOWN OF MARAl�'A, ARIZONA NOTES TO COMBINED FINANCIAL STATEMENTS June 30, 2002 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued): G. Reservations and D signation of Ftnd Balancec In addition to the reservations of fund balance for prepaid expenditures mentioned below, the Town has established other reservations of fund balance as follows: Reserved for debt service represents amounts required to be maintained under the provisions of various bond ordinances or amounts reserved for future debt service requirements. Reserved for restricted assets represents assets maintained by Pima County for custodial purposes that are restricted for expenditures that will enhance the Town's ability to conduct police investigations. The designation for subsequent years' expenditures represents Capital Projects Fund Balances specifically identified for capital improvements. H. ilse of �.ctimate The preparation of general purpose financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions. This will effect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenditures during the reporting period. Actual results could differ from these estimates. I. Bond Iscuance C'oc�c For the enterprise/water fund, bond issuance costs are capitalized in the period in which the bonds are issued and aze amortized on a straiQht line basis over 20 years. For all other funds, bond issuance costs aze recognized as expenditures in the period in which the bonds are issued. J. Cash an ac��i�t�ivalentc For the purpose of the statement of cash flo��s, the Town considers all highly liquid investments (including the funds' participation in the investment pool account, and appropriate restricted assets) to be cash equivalents. Individual fund investments with a maturity of 3 months or less when pu.rchased are considered as cash equivalents. 1� TOWN OF MARANA, ARIZONA NOTES TO COMBINED FINANCIAL STATEMENTS June 30, 2002 � � NOTE 1 - (Continued): K. Investments SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES GASB Statement No. 31 provides that governmental entities may report all investments at fair value or they may elect to report certain money market investments and participating interest-earning investment contracts at amortized cost. The Town ha.s elected to report all investments at fair value. Staxutes authorize the Town to invest public monies in certificates of deposit, interest bearing savings accounts, and repurchase agreements provided eligible depositories meet interest rate, capital structure, and collateral requirements. Other authorized investments include obligations of the U.S. Government and its agencies, of Arizona utility and municipal improvement districts, and the Arizona State Treasurer's Local Government Investment Pool ("LGIP"). The LGIP is overseen by the State of Arizona. The fair value of each share in the LGIP is $1. � : r � The trust indentures executed for all of the bond series issued require all cash and investments for each bond series to be held on deposit by the trustee/fiscal agents. These assets are restricted for payment of interest and trustee fees associated with the bond issues, retirement of principa.l balances, and purchasing fixed assets for the water fund to fmance various capital projects, and to construct a new facility for the Town's operations. In addition, the State of Arizona required that assets obtained at the completion of crim.inal proceedings by the Town's police department be given to Pima County for custodial purposes. These assets aze restricted for expenditures that will enhance the Town's ability to conduct police investigations. M. Pre$aid xnenditures Prepaid expenditures are for payments made by the Town in the current year for liabilit�� insurance coverages eatending into the subsequent year, and the reserve for prepaid items has been recognized to signify that a portion of fund balance is not available for other subsequent expenditures. N. Interfund Receivable and ava,,, bles During the course of operations, numerous transactions occur between individual funds for goods provided or services rendered. These receivables and payables are classified as "due from other funds" and "due to other funds" on the combined balance sheet. -- 16 TOWN OF MARANA, ARIZONA NOTES TO COMBINED FINANCIAL STATEMENTS June 30, 2002 NOTE 1 - (Continued): O. Invent__ oriec SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The Town uses the purchase method of expending inventories. There were no significant inventories on hand at June 30, 2002 in the general fund. P. Fixed A. etc C'1en�a1 Fixed A�SPtS A �ol�nt ro �r► Fixed assets used in Governmentai Fund Type operations (general fixed assets), including those purchased with Federal grant monies, are accounted for in the General Fixed Assets Account Group, rather than in Governmental Funds. Public domain ("infrastructure") general fixed assets, such as roads, bridges, curbs and gutters, streets and sidewalks, drainage systems, and lighting systems, are not capitalized along with other general fixed assets for reporting purposes. Donated fixed assets are valued at estimated fair value on the date donated. All purchased fixed assets are valued at cost. The cost of normal maintenance and repairs that do not add to the value of the asset or materially extend asset lives are not capitalized. No depreciation has been provided on any of the remaining assets. Pronri rv Fund Tvng Property, plant, and equipment owned by the enterprise funds are recorded at cost. Repairs and maintenance are recorded as expenses; renewals and betterments are capitalized. Depreciation is provided over the estimated useful lives of such assets using the straight- line method. These estimated useful lives aze as follows: Pump stations, distribution systems, equipment and improvements Organization costs Machinery, equipment, and assets under capital lease Estimated Useful Li��e� �Ye r�l 20 5-40 � 17 TOWN OF MARANA, ARIZONA NOTES TO COMBINED FINANCIAL STATEMENTS June 30, 2002 ' , I' NOTE 1 - (Continued): SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES � :� •� �� �� The amount capitalized under capital leases is the lesser of the present value of the minimum lease payments or the fair value of the leased properties at the beginning of the respective lease terms. When a governmental fund acquires a fixed asset through a capital lease agreement, the acquisition is reflected as an expenditure and other financing source, and simuitaneously the acquired asset and related liability are recorded in the General Fixed Assets Account Group and in the General Long-Term Debt Account Group. Capitalized leases of the proprietary fund are accounted for entirely within the proprietary fund by capita.lizing the asset acquired and recording the lease obligation as a liability. . ��i�• �� � � In the general long-term debt group of accounts, essentially the entire accumulated liability for compensated absences is reflected, since the liability at June 30, 2002, will most likely not be paid within the current accounting cycle. Rather, in fiscal 2003 the Town will probably pay that year's accrual without utilizing amounts accrued from prior years. S. Fund Changes and Transactionc etween Fund Transactions that would be treated as revenue, expenditures, or expenses if they involved organizations external to the governmental unit are accounted for as revenue, expenditures, or expenses in the funds involved. Transactions which constitute reimbursements of a fund for expenditures or expenses initially made from that fund which are properly applicable to another fund are recorded as expenditures or expenses in the reimbursing fund and as reductions of the eapenditure or expense in the fund that is reimbursed. Nonrecurring or non-routine transfers of equin� between funds are treated as residual equity transfers and are reported as additions to or deductions from the fund balance of governmental funds. Residual equin� transfers to the proprietary fund are treated as contributed capital. = 18 TOWN OF MARANA, ARIZONA NOTES TO COMBINED FINANCIAL STATEMENTS June 30, 2002 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued): T. Com�arative Data Comparative total data for the prior year is presented in the financial statements in order to provide an understanding of changes in the Town's financial position and operations. However, presentation of prior yeaz totals by fund type have not been presented in the statements, since their inclusion would make the statements unduly complex and difficult to read. Total columns on the combined financial statements are captioned "memorandum only" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position, results of operations, or changes in cash flows in conformity with generally accepted accounting principles. Neither is such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data. U. Seized Pro�er�tv The Town Police have in their custody certain assets seized in criminal proceedings. Until formal procedures have been finalized, the ownership of this property is not determinable. In addition, legal requirements dictate that such assets not be reflected on the Town's financial records in an agency capacity until Town ownership has been determined. Consequently, no such assets are recorded on these financial statements. NOTE 2- DEPOSITS AND INVESTMENTS A. it Cash on the combined balance sheet cansist of amounts held in petty cash funds, change funds, and bank demand accounts. Cash held in uninsured and uncollateralized petty cash and change funds totaled $100 at June 30. 2002. At �rear end, the book value of the Town's bank demand accounts were $407,955 and the banl; balances were $1,5�2,904. The difference of $1,144,949 represents deposits in transit and outstanding checks at June 30, 2002. $100,000 of the total bank balance was covered b�� federal depository insurance and the remaining balance of $1,044,949 of the total bank balance was covered by collateral held by the Town's custodial banl: in the To«�'s name. — 19 TOWN OF MARANA, ARIZONA NOTES TO COMBINED FINANCIAL STATEMENTS June 30, 2002 NOTE 2- DEPOSITS AND INVESTMENTS (Continued) A. De�osits (Continued) At year end, the Town owned a nonnegotiable certificate of deposit with an original maturity of more than 3 months. This certificate of deposit has a bank balance of $560,000 at June 30, 2002, which is the same as its fair value. This certificate of deposit is covered by collateral held by the Town's custodial bank in the Town's name. Restricted assets: cash is uncollateralized by the trustee holding these balances. At year end, the book value of these balances, which was the same as the bank balances, totaled $20,912. : � �� • The Town's investments as of June 30, 2002 are: Fair Value State Treasurer's Local Government Investment Pool $29,438,606 Money Market Funds 1,�96,262 Total Investments $31,034,868 Amounts invested in the Sta.te Treasurer's Loca1 Government Investment Pool and Money Market Funds are recorded at fair value. Government Pool investments and money market fi�nds are not categorized, in accordance with GASB No. 3, because they are not evidenced by securities that exist in physical or book entry form. A reconciliation of E�ibit 1 to Note 2 is as follows: Exhibit 1: Cash/Pooled Investments Investment Restricted assets: Cash/Pooled Investments Restricted assets: Cash/Investments Total Note 2: Cash Certificate of Deposit Restricted assets: Cash Investments Total $19,312,684 560,000 10,533,977 1,617,174 �32,023.83� $ 408,0�� 560,000 20,912 31,034 ��Z — 2� TOWN OF MARANA, ARIZONA NOTES TO COMBINED FINANCIAL STATEMENTS June 30, 2002 NOTE 3- FIXED ASSETS, NET OF ACCUMULATED DEPRECIATION The following is a summary of the changes in general fixed assets for fisca12002: Balance July 1, 2001 Addition Land Buildings Assets under capital lease Machinery, equipment, and other assets Marana Park Continental Neighborhood Park Leasehold improvements $ 2,279,821 $ 146,604 2,609,147 356,423 - 536,385 3,939,342 1,494,508 1,111,614 283,049 Balance I2�le�� ine 0, 002 $ (25,660) $ 2,400,765 (78,350) 2,887,220 - 536,385 (20,688) 5,413,162 - 1,394,663 - 518,892 - 518,892 464,1�7 - - 464,157 Total 1'1' 1: :• '� � ••: � .. A summary of enterprise fund property, plant, and equipment at June 30, 2002 is as follows: Land Water rights Improvements, including wells and tanks Machinery, equipment, and other assets Construction in progress Organization costs Total Less accumulated depreciation and amortization Fixed assets, net — 21 $ 221,810 433,696 4,214,281 140,103 2,099,618 54,7�7 �. . : 1 1•• ,. � �. TOWN OF MARANA, ARIZONA NOTES TO COMBINED FINANCIAL STATEMENTS June 30, 2002 NOTE 4 - INTERFiJND TRANSACTIONS A. Amounts due to/from other funds at June 30, 2002, are as follows: The amount due to the General Fund is due from: Special Revenue: 2000 Community Development Block Grant 2001 Community Development Block Grant GITEM HIDTA MANTIS Auto Theft Capita.l Projects: 2000 General Obligation $ 9,973 30,000 8,662 50,511 6,987 12,610 3,057,682 Enterprise: � Airport Authority Total � ' G 285,688 $3,462,113 The amount due to Special Revenue Funds is as follows: The amount due to HOME Program is due from the General Fund $ 131,875 The amount due to CJEF Court Fund is due from the General Fund 32,427 The amount due to Fill The Gap - Courts is due from the General Fund 4,993 Total $ 169,295 The amount due to Capital Project Funds is as follows: � The amount due to Other Capital Project Funds is due from the General Fund from Special Rever�ue: 1 2000 Community Development Block Grant Highway User Revenue Total �� � ' , I� The amount due to Enterprise Funds is as follows: The amount due to the Water Fund is due from the General Fund the Special Revenue Fund HOME pro�am the Capital Project Fund 1997 General Obligation Total �� � �2,195,623 80,180 91,620 �2,367,423 � 1,036,107 1,171 79,432 �1,116,710 TOWN OF MARANA, ARIZONA NOTES TO COMBINED FINANCIAL STATEMENTS June 30, 2002 NOTE 4 - INTERFiJND TRANSACTIONS (Continued) B. Residual Equitv Transfers In/Out• The amount transferred to the Enterprise Funds is as follows: The amount transferred to the Water Fund was the general fund the Capital Project Funds1997 General Obligation Total to water fund The amount transferred to the Airport Authority was transfened from the general fund Total NOTE 5 - CAPITAL LEASE $ 862,725 _ 816,595 1,679,320 165.664 $1,844,984 The Town entered into a long-term capital lease during fiscal 2002 involving the acquisition of equipment for General Town purposes; this commitment is expected to be funded by the Town's General Fund. Under this lease, the Town is required to make quarterly payments of $52,288, which includes an effective annual interest rate of 3.7%. Below is a schedule by year of future minimum lease payments under the capital lease as of June 30, 2002: Fiscal Year Ending June 30 2003 2004 200� Total minimum lease payments Less amount representing interest Present value of net minimum lease payments NOTE 6- LONG - TERM DEBT General Long- Term Debt $ 209,151 209,151 156.863 575,165 30 683) $ 544.482 During 1998, the Town's enterprise%�ater fund was advanced funds under a zero-interest loan in the amount of $88,000 for the purchase of fixed assets for the water system, collateralized by two storage tanks in the water system and requiring monthly payments of $733 over a ten year term. ZJ TOWN OF MARANA, ARIZONA NOTES TO COMBINED FINANCIAL STATEMENTS June 30, 2002 NOTE 6- LONG - TERM DEBT (Continued) During 1998, a capital improvement project in the capital project funds was financed by a taxpayer. Under this unsecured agreement, the Town agreed to repay the taxpayer the total cost of $665,881 for this project under a zero-interest repayment plan based on quarterly payments of 33% of the Town sales tax collected by the Town from local businesses within the general vicinity of the improvements created by this project. Based on payments made during fiscal 2002, it is estimated the remaining balance will be paid in full during fiscal 2003. The following is a schedule by yeazs of the debt service requirements for this note , payable in the water fund and contract payable in the general long-term debt account group as of June 30, 2002: , Fiscal Year Ending June 30. 2003 , 2004 2005 , 2006 2007 Thereafter � Total Less amount representing interest Principal i Water General Long- Fund Term Debt $ 8,800 $ 41,062 8,800 - 8,800 - 8,800 - 8,800 - 8�800 - 52,800 41,062 -�=—) -�_) $ 52,800 4 2 � The following is a surnmary of changes in general long-term debt activity for fisca12002: ' �li IJ � �J Revenue Bonds (A) Compensated absences (B) Capital leases Contract payable Total Balances Balances at July l, June 30, 2001 Additions Reductions 2002 $16,330,000 $ - $(1,250,000) $15,080,000 285,122 50,381 - ;;�,�03 - 591,300 (46,818) 544,482 184,771 - (�43,709) 41,.062 �16,79�,893 $641,681 �1,440,�27) $16,001.047 ' = 24 TOWN OF MARANA, ARIZONA NOTES TO COMBINED FINANCIAL STATEMENTS June 30, 2002 NOTE 6- LONG - TERM DEBT (Continued) A. Beven � Bonds The 1997 Series Revenue Bonds are callable as follows: Redemntion Dat 7-1-2008 and 1-1-2009 7-1-2009 and 1-1-2010 7-1-2010 and thereafter The 2000 Series Revenue Bonds are not callable. Redemption Price (As a Percent of Princinal) 101.0% 100.5 100.0 Annual debt service requirements to maturity for these revenue bonds are as follows: Fiscal Year 1997 Series 2000 Series Ending n 0 ond Bond� Tota 2003 $ 791,454 $ 1,249,100 $ 2,040,554 2004 790,873 1,255,550 2,046,423 2005 799,105 1,236,313 2,035,418 2006 785,380 1,240,800 2,026,180 2007 795,325 1,241,950 2,037,27� Thereafter �,���� 4, 18 1� 1 10.08.�,762 Total 9 10,541,844 20,269,612 Less amount representing interest � 3_Q97,�$) ( 2 p 1 44) ,__2_�S 1 5_1R9 �1�� Principal �� ;n nnn �x $ 8_450 00� $15•Ogp ppp B. �omnen ated Ahcencec This consists of the long-term portion of accrued ��acation and compensatory time, with an increase of $50,381 for fisca12002. — 2J TOWN OF MARANA, ARIZONA NOTES TO COMBINED FINANCIAL STATEMENTS June 30, 2002 ' ' ' NOTE 7- EMPLOYEE RETIREMENT SYSTEMS : �i: ' . � 's :' 'n'� •�i All of the Town's full-time police officers are covered by the Mazana Marshal's Arizona Public Safety Personnel Retirement System, which is an agent /multiple-employer administered by the fund manager of the Arizona Public Safety Personnel Retirement System, defined benefit public employee retirement system (PERS). Authority to establish and amend the benefit provisions of this pension plan is established by Arizona State statute. The State of Arizona Public Safety Personnel Retirement System issues a publicly available financial report that includes financial statements and required supplemental information for the Marana Marshal's plan. This report may be obtained by writing to the Arizona Public Safety Personnel Retirement System 1020 E. Missouri Phoenix, Arizona 85014. The pension plan provides pension benefits, deferred allowances, death and disability benefits and limited health insurance benefits. A member is eligible if he is employed in a covered position prior to attaining age 50 years, for at least 20 hours a week for more than 6 months a year. A member may retire after reaching the age of 62 and completion of 15 years service, or completion of 20 years service with the Town. Benefits vest after 10 years of credited service. Police officers who retire with 25 or more years of credited service are entitled to monthly pension payments for the remainder of their lives equal to 50% of average monthly compensation for the first 20 years of credited service with the Town, plus 2 1/2% of average monthly compensation for each year of credited service above 20 years with the Town. Police officers who retire with 20 years of credited service with the Town, plus 2% of average monthly compensation for each yeaz of credited service between 20 and 25 years with the Town. Police o�cers ��ho retire with less than 20 years of credited service with the Town are entitled to monthly pension payments for the remainder of their lives equal to the average monthly compensation for the entire service period reduced at a rate of 4% a year for each service yeaz below 20 years of service. The maximum monthly pension payment cannot exceed 80% of the average monthly compensation. Pension provisions include deferred allowances whereby a police officer may terminate his emplo�rment with the Town after accumulating 10 or more years credited service. Pension benefits are then equal to twice the amount of pension benefits based on the police officer's accumulated contributions. If the police officer does not withdraw his accumulated contributions, the police officer is entitled to these pension benefits upon reaching the age of 62. = 26 TOWN OF MARANA, ARIZONA NOTES TO COMBINED FINANCIAL STATEMENTS June 30, 2002 NOTE 7- EMPLOYEE RETIREMENT SYSTEMS (Continued) A. Arizona P�blic af t; Retirem nt �ystem (Continued) Pension provisions include disability and death benefits. Disabled officers are entitled to monthly payments for life of 50% of their average monthly compensation or normal pension amount, whichever is greater, if their disability is service connected, regardless of years of credited service. Average monthly compensation (AMC) is one-thirty-sixth of total compensation paid a member during the 3 years, out of the last 10 years of credited service, in which the amount paid was highest. If the police officer's disability was not service connected, the disabled officer is entitled to monthly payments for life of 25% of AMC, if the credited service is less than 7 years, 50% of ANIC, if the credited service is 7 through 13 yeazs, or 75% of AMC, if the credited service is 14 through 19 years. If the police officer is only temporarily disabled, he is entitled to monthly payments equal to one-twelfth of 50% of compensation paid during the year preceding the date the disability was incurred. The payments terminate after 12 months or prior recovery. Surviving spouses aze entitled to 80% of the monthly payments, or 100% if duty related, the deceased active police officer would have been paid for disability or, in the case of a retired police officer, 80% of the retired officer's monthly pension payments. To qualify as a surviving spouse, the spouse must have been married to the deceased for at least 2 years. The spouse's benefits terminate upon her death. Each dependent child of a deceased police o�cer is entitled to one-ninth of the monthly payments the deceased active police officer would have been paid for disability or, in the case of a retired police o�cer, one-ninth of the retired o�cer's monthly pension payments. When the dependent child reaches the age of 18 or 23, if the dependent is a full-time student, the monthly payments ��ill terminate. Pension provisions include health insurance benefits, whereby the retired police officer or his sun�iving spouse can elect to be covered by a health insurance plan provided by the Town or State of Arizona. The retired police officer or his surviving spouse pay for this coverage. However, they cannot be charged more than $150 per month plus an amount up to $110 per month for dependent coverage, if any. O�cers c��ith at least 20 years of credited service may elect to enter the Deferred Retirement Option Plan (DROP), for up to 60 months. During the DROP period, the frozen accrued pension is credited to the officer's DROP account. The account is paid at time of actuai retirement. The To��n's current year payroll for eligible police officers amounted to approaimately �2,478,000. — 27 TOWN OF MARANA, ARIZONA NOTES TO COMBINED FINANCIAL STATEMENTS June 30, 2002 NOTE 7- EMPLOYEE RETIREMENT SYSTEMS (Continued) A. ArLOna Public Safety Retirement Sx,ctem (Continued) Police officers of the Town are required to pay 7.65% of their gross earnings to the pension plan. The Town makes periodic contributions to the pension plan at actuarially determined rates that, expressed as percentages of annual covered payroll, are designed to accumulate sufficient assets to pay benefits when due. The normal cost and actuarial accrued liability are determined using an entry age actuarial funding method. Unfunded actuarial accrued liabilities are being amortized as a level percent of payroll over an open period of 20 years starting July 1, 2002. During 2002, the Town was required to contribute 10.04% of its police officers' covered payroll to the plan. ' The contribution requirements of plan members are esta.blished and maybe amended by Arizona State statute. The Arizona Public Safety Personnel Retirement System's funding policy provides for actuarially determined employer contributions at rates which will ' provide assets sufficient to pay benefits when due. This funding policy/objective is stated in the Arizona State statutes. , C Total contributions made during fisca12002 were $434,539, of which $244,971 was made by the Town and $189,568 was made by police officers. The pension contributions represent funding for normal cost and the amortization of the unfunded actuarial accrued liability. ' A variety of significant actuarial assumptions are used as of June 30, 2002, to determine the standardized measure of the entry age actuarial accrued liability and these assumptions are sumznarized below: !J ' � I' I' � • The present value of future pension payments is computed by using a discount rate of 9%. The discount rate is equal to the estimated long-term rate of return on current and future investments of the pension plan. • Future pension payments reflect an assumption of 5.�% (compounded annually) salary increases as a result of inflation. • Future pension payments reflect an assumption of additional projected salary increases ranging from 1.0% to 4.0% per year, depending on age, attributable to seniority/merit. The actuarial value of the assets was deternuned usin� techniques that smooth the effects of short-term volatility in the market value of investments. = 28 TOWN OF MARANA, ARIZONA ' NOTES TO COMBINED FINANCIAL STATEMENTS June 30, 2002 , NOTE 7- EMPLOYEE RETIREMENT SYSTEMS (Continued) ' A. Ari�ona Ptbli ��fetv Retirement y sterr� (Continued) ' The standardized measure of the unfunded actuarial accrued liability as of June 30, 2002 is as follows: ' Active members Retired members and survivors $ 2,g97,519 i Former members with vested benefits 789,598 --_,__.� ' Total actuarial accrued liability Actuarial value of assets 3��5��2�9 5.4---_---._�— ' Unfunded actuarial accrued liability ��.���1,�Z$) ' �teai.�ire-d � Tnf �.� ion ' �LE OF FMPT nv�u rn�TT„Tr., j ON� Fiscal � ' Year Ended Required Percent , 0 Con_ trih� �ontrib�tPr� ' 1996 $ �8,��$ 100.0% 1997 62 948 100.0% � 1998 � 1999 66,970 100.0% 100,783 100.0% , 2000 106 655 100.0% 2001 211,911 0 2002 100.0 /o 244,971 100.0% ' ' ' ' �9 ' TOWN OF MARANA, ARIZONA NOTES TO COMBINED FINANCIAL STATEMENTS June 30, 2002 NOTE 7- EMPLOYEE RETIREMENT SYSTEMS (Continued) A. Arizona Public Safetv Retirement Sy.�tem (Continued) Required Su�nlemental Information (Continued) . 1 1 � ►/ ► ':� : Valuation Date June 30 1497 1998 1999 2000 2001 2002 (6) Unfunded (2) AAL as a (1) Entry Age (3) (4) (5) Percentage Actuarial Actuarial Percent Unfunded Annual of Covered Value of Accrued Funded AAL Covered Payroll Assets Liabili AAL) (11/(21 121�111 Pavroll f41/f51 $ 1,956,059 $1,862,109 105.0% $ (93,950) $1,275,174 - % 2,527,484 2,188,698 115.5 (338,786) 1,398,167 -% �,374,868 3,145,797 107.� (229,071) 1,737,509 - % 4,265,5�7 4,249,197 100.4 (16,340) 2,014,412 - % 5,140,522 3,179,638 161.7 (1,960,884) 2,225,156 - % 5,479,157 3,757,279 145.8 (1,721,878) 2,508,�48 - % •�_� _� � �. ��_ ' ' I' It Fiscal Year Ended June 30, 1997 1998 1999 2000 2001 2002 Anrival Pension Cost �� $ 62,948 66,970 100,783 106,665 211,911 244,971 Percent Contributed 100.0% 100.0 100.0 100.0 100.0 100.0 Net Pension ' t' n $0 0 0 0 0 0 No changes in actuarial assumptions or benefit provisions that would siQnificantly affect the valuation of the unfunded actuarial accrued liabilities occurred during fisca12002. During fisca12002 and as of June 30, 2002, the Marana Marshal's Arizona PERS held no securities issued b�- the Town or other related parties. 30 TOWN OF MARANA, ARIZONA NOTES TO COMBINED FINANCIAL STATEMENTS June 30, 2002 NOTE 7- EMPLOYEE RETIREMENT SYSTEMS (Continued) : �. � � ►/= '�� ►' "��'� � :� Effective July l, 1995, the Town established a Money Purchase Plan and Trust known as the Town of Marana Retirement Plan (Plan) in the form of the International City Management Association Retirement Corporation Prototype Money Purchase Plan and Trust. The prototype plan is qualified under Section 401 of the Internal Revenue Code. The Plan is a defined contribution plan that provides pension benefits for all full-time employees and permanent part-time employees, except for commissioned police personnel who aze covered under the Arizona Public Safety Personnel Retirement System. In a defined contribution plan, benefits depend solely on amounts contributed to the plan plus investment earnings. Employees are eligible to participate from the date of employment. In fiscal 2002, the Plan was amended to require that the employee and t�ie Town contribute an amount equal to 4% and 8%, respectively, of the employee's biweekly earnings, which includes overtime and bonuses. The Town's contributions for each employee (and interest allocated to the employee's account) are fully vested after five years of continuous service. Town contributions far, and interest forfeited by, employees who leave employment before five years of service are used to reduce the Town's current-period contribution requirement. The Town's total payroll in fiscal year 2002 was approximately $7,463,000. The Town's contributions were calculated using the earnings amount of approximately $5,344,000. For fisca12002, the covered employees made the required 4% contribution, amounting to $213,773, with the Town making a required smaller contribution due to the application of forfeitures, amounting to $364,490 for a total of $578,262. '� •��� � �. •� :•,• The Town offers no postemployment benefits to employees other than the previously discussed retirement plans. NOTE 8 - RISK MANAGEMENT The Town is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets; errors and omissions; and natural disasters. The Tov��n's insurance protection is provided by the Arizona Municipal Risk Retention Pool, of which the Town is a participating member. The limit for basis coverage is for $2,000,000 per occurrence on a claims made purpose. Excess coverage is for an additional $13,000,000 per occurrence on a follow form, claims made basis. — 31 � , ' ' TOWN OF MARANA, ARIZONA NOTES TO COMBINED FINANCIAL STATEMENTS June 30, 2002 NOTE 8 - RISK MANAGEMENT (Continued) The Arizona Municipal Risk Retention Pool is structured such that member premiums are � based on an actuarial review that will provide adequate reserves to allow the pool to meet its expected financial obligations. The pool has the authority to assess its members ' additional premiums should reserves and annual premiums be insufficient to meet the pool's obligations. For the fiscal yeazs ended June 30, 2002, 2001, and 2000 there were no settlements through the pool for the Town that exceeded insurance coverage. � ' ' Workers' compensation insurance is placed through the Arizona Municipal Workers' Compensation Fund. NOTE 9- EXCESS OF EXPENDITURES OVER APPROPRIATIONS IN INDIVIDUAL FUNDS AND DEFICIT FUND BALANCES OF INDIVIDUAL FUNDS For fiscal year 2002, expenditures exceeded authorized appropriations in the general fund ' by $1,873,734, the 2000 General Obligation (a debt service fund) by $19,300, and the following individual special revenue funds: 1999 Community Development Block Grant $ 152 ! GITEM 4,912 HIDTA 2,861 ' MANTIS 9,862 LLEBG 6,3 80 The excess expenditures for the general fund, the 2000 General Obligation (a debt service fund), and for all of these special revenue funds were covered by excise revenues, fund balance, and grant revenues, respectively. At June 30 2002, the water fund in the enterprise funds had a deficit fund balance of $1,235,407. This deficit fund balance is covered by contributed capital and is primarily the result of accumulated depreciation and amortiza.tion on fixed assets. NOTE 10 - COMIVIITMENTS AND CONTINGENCIES At June 30, 2002, the Town had entered into contracts with general contractors for six capital improvement projects in Other Capital Projects Funds, a Capital Project Fund, and two construction projects in the Airport Authority, an Enterprise Fund. These projects involved the commitment of $14,423,092 with $8,729,600 recognized as expenditures during June 30, 2002 and $347,087 capitalized as part of construction in progress in fiaed assets in the enterprise funds, leaving a remaining commitment of $5,346,405 at June 30, 2002. -- 32 TOWN OF MARANA, ARIZONA NOTES TO COMBINED FINANCIAL STATEMENTS June 30, 2002 NOTE 10 - COMMITMENTS AND CONTINGENCIES (Continued) The Town is continuously liable with respect to other claims incidental to the ordinary course of its operations. At June 30, 2002, it is the opinion of Town management, based on the advice of the Town Attorney and outside counsel, that any such claims would not have a material effect on the Town's financial position. The Town leases office space for its development and planning, police, and magistrate court departments under noncancelable, long-term operating leases with expirations of September 2003 through September 2004. Two of these leases requires the Town to pay its shaze of real estate taxes, common area charges, and management fees. These same leases require annual adjustments for increases in the Town's share of real estate t�es, common area charges, and management fees. However, the increased related to controllable common area charges and management fees by the landlord cannot increase more than 4.5% over the prior year. One lease contains two five-year renewal options and a second lease contains one three-year renewal option at a monthly base rent of $3,715, plus an arinual adjustment of 3%. During fiscal 2002, the Town was assigned and assumed a noncancelable long-term operating lease for 2,400 acres of land with the State of Arizona with an expiration of October 2099. This lease had an initial annual rent of $432,000 that requires 10% increases in the annual rent payments for each succeeding five year period. These leases provide for payments of minimum annual rentals as follows, excluding real estate ta��es, common area charges, management fees, and sales taxes: Years Ending une 0 2003 2004 2005 2006 2007 Thereafter Total $ 621,409 508.262 439,171 432,000 47�.20.0 _ 118,436 71 � $120, 1 �,7�4 Minimum annual rentals above excludes annual rental under the remaining rene«�al options as of June 30, 2002. Rent expense under the above leases for fiscal 2002 aggregated $655,083. _— ., ., » � ' ' � TOWN OF MARA.NA, ARIZONA NOTES TO COMBINED FINANCIAL STATEMENTS June 30, 2002 NOTE 11- WATER CONTRACTS The Town has a contract with Cortaro Water Users to produce substantially all of its ' water. Under the contract, the Town pays Cortaro a rate based on water production/usage. The rates charged are on a tiered-rate structure which provide a ' discount for larger volumes of water produced and are subject to annual adjustments. Water production expense under this contract for the year ended June 30, 2002 was $117,881 and is reflected in the Water Fund, an Enterprise Fund. � � � �J � �._� The Town has a contract with the Central Arizona Project (CAP) to pay CAP the Town's share of costs associated with the CAP making available recharge water to the Town. Under this agreement, the Town is charged its share of costs regardless of whether the Town has accessed recharge water from CAP. The rechazge expense under this contract for the year ended June 30, 2002 was $46,065 and is reflected in the Water Fund, an Enterprise Fund. NOTE 12 - SEGMENT DISCLOSURE The Town maintains two Enterprise Funds. The Water Fund provides water service to the Town. The Airport Authority operates the Marana Airport. Key financial information as of and for the yeaz ended June 30, 2002 for these funds are as follows: ' Operating revenues ' Operating expenses excluding depreciation Depreciation Loss from operations ' Nonoperating revenues Net income (loss) ' ' ' ' Residual equity transfers in Fixed asset additions Net working capital (liability) Total assets Total equity Water Fund $ 888,511 847,994 20�,810 (16�,293) � (165,29;) , . • 1 �:. 1: .. �.. , 1.• 1: Airport Authoritv $ 86,484 164,703 6,485 (84,704) 1,130,301 �1,045,597 . ..� • ••. .: � . .. • � . ..• . Total $ 974,995 1,012,697 212,29� (249,997) 1,130,301 $ 880,304 � 1,844,984 2 4 24 12 �8,141,769 �6,� 1 �,27� ' — 34 TOWN OF MARANA, ARIZONA NOTES TO COMBINED FINANCIAL STATEMENTS June 30, 2002 NOTE 13 - LEASING ARRANGEMENTS In conjunction with the Town assuming a noncancelable long-term operating lease for 2,400 acres of land with the State of Arizona (see Note 10 - Commitments and Contingencies for further details), a developer has signed a noncancelable agreement to reimburse the Town the annual rental payment for a minimum of twenty years. This noncancelable twenty year term begins after the first twelve consecutive months generate more than $1,000,000 in resort sales tax to the Town from the development project known as "Dove Mountain". It is unknown when this event will occur, resulting in the start of the twenty year term. T'he Airport Authority, an Enterprise Fund, leases part of the airport to local Marana businesses under noncancelable operating leases requiring fixed and contingent rentals based on aviation fuel dispensed on the premises. The following is a schedule of future minimum rentals receivable under these leases at June 30, 2002, not including any year beyond the minimum of twenty years in the lease for the general fund and not including renewal options for the leases for the Airport Authority: Fiscal Yeaz Fndin J,g une 30.� 2003 2004 2005 2006 2007 Thereafter Total General Fund $ 432,000 432,000 432,000 432,000 475,200 �,3��� $9,592,560 Airport Au� $ 69,041 85,770 87,291 90,820 84,220 1,707,938 $2,125,080 NOTE 14 - FUTURE CAANGE IN ACCOUNTING PRINCIPLES In June 1999, the Govemmental Accounting Standards Board issued Statement No. 34, "Basic Financial Statements - and Management's discussion and Analysis - for State and Local Govemments." This statement establishes new financial reporting requirements for a11 state and local govern.ments. It creates new information and restructures much of the information that is currently presented in the financial statements. The Town of Marana will adopt this new standard beginning with its 2003 fiscal year, the year in which adoption is first required for the Town of Marana. Adjustments to governmental proprietar}-, and fiduciar�- funds resulting from the change to comply with this Statement will be treated as adjustments of prior periods, and financial statements presented for the periods affected v��ill be restated unless restatement is not practical. The impact of adopting this statement has not yet been determined. These notes aze an integral part of the accompanying combined financial statements. — 35 ' � ' ' C O MB ININ G � IND IV ID UAL F UND AN�D A �CQUNT GRO UP STATE TIZENT S 1 I 1 I 1 [! I 1 ST:�TE:��1E\TS .-� GE�ER�L FL�D The General r und accounts for all revenues and expenditures used to finance the traditional s���ices associated with a municipal Qovenunent ��hich are not accounted ior in other fu;►ds. In Marana, these services include Qeneral �overnment, deve]opment �.n� plannin� sen�ices, to��n attorney, police, maQistrate court, public works, and parks and recreation. TOWN OF MARANA, ARIZONA COMPARATIVE BALANCE SHEETS GENERAL FUND — EXHIBIT A-1 June 30, 2002 and 2001 ASSETS Cash/Pooled Investments Investment Receivables: Ta�ces Other Prepaid expenditures Due from other funds TOTAL ASSETS 2002 $ 19,312,684 560,000 1,355,793 146,717 90,000 3, 462,113 $ 24,927,307 LIABILITIES AND FUND EQUI7Y LIABILITIES Accounts payable and accrued liabilities $ 798,842 Due to other funds 3,401,025 Deferred revenue 279,472 Total liabilities 4,479,339 FUND EGlUITY Reserved for prepaid expenditures Unreserved fund balances Total fund equity 90, 000 20,357,96B 20,447,968 TOTAL LIABILITIES AND FUND EG1U17Y $ 24,927,307 2001 $ 17,593,554 508,502 1,021,245 148,881 70, 000 3,191,983 $ 22,534,165 $ 1,268,096 950, 887 169,378 2,388,361 70, 000 20,075,804 20,145 , 804 $ 22,534,165 36 STATEMENT OF REVENUE EXPE D�ITURES AN IN UNRESERVED FUND BALANCE - BUDGET AND ACTUAL GENERAL FUND - EXHIBIT A-2 Year Ended June 30, 2002 REVENUES Taxes Town sales tax Town sales tax audits Total taxes Other agencies Sales taxes - state State revenue sharing Auto lieu taxes - state Total other agencies Licenses, fees and permits Building permits Development fees Im pact fees Cable television franchise fees Business licenses Other Total licenses, fees and permits Fines, forteitures and penalties; Town court fines Interest Miscellaneous Other Lease income Total miscellaneous Total revenues OTHER FINANCIAL SOURCES Lease purchase proceeds Total other financial sources Total revenues and other financial sources EXPENDITURES General government Other general government Contractuai services Special programs Other Debt service Total other general government Variance - Favorable Actual _Budget (Unfavorable) $ 14,821,929 �' $14,465,000 $ 356,929 436,190 - 436,190 15,258,119 i4,465,00p 793,119 1,044,631 +�' 1,083,360 (38,729) 1,413,908 ,' 1,413,680 228 5 �8 �' 450,000 63,378 2�9_ 71_917 2,947,040 24,877 2,863,648'` 1,400,000 1,463,648 902,033 ✓ - 902,033 1,411,256✓ 730,500 680,756 67,992'� 66,450 1,542 29,875 ✓ 20, 000 9, 875 ���.09$ 60,000 45,095 5�3_ 79 .__ 8 99 2,276,950 3,102,949 3_ 53,361'� 405,000 (51,639) 66�,948 1,483,500 (821,552) 63,234� 70,000 (6,766) 4 �8 43�,000 �5,2�8 ��? 50�,0�� 8,512 25,�_ 38__�56 22,082,490 3,056,266 5 �� - 591, 300 591, 300 �_ 591,300 25,�_ 3�,��6 22,082,490 3,647,566 677,207 989,195 111,988 113,904 436,136 322,232 712,234 632,1b0 (80,084) �- S= 2_ °3,8�� 57,803 �,$_ 99___342 2,311,281 411,939 37 TOWN OF MARANA, ARIZONA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN UNRESERVED FUND BALANCE - BUDGET AND ACTUAL GENERAL FUND - EXHIBIT A-2 (Continued) Year Ended June 30, 2002 Variance - Favorable Actual Budget (Unfavorable) � �J ' EXPENDITURES (continued) General government (continued) Mayor and council Contractual services Commodities Other Total mayor and council Human resources Personal services Contractual services Commodities Special programs Other Total human resources Accounting and finance Personal services Contractual services Commodities Other Capital outlay Total accounting and finance Town Clerk Personal services Contractual services Commodities Other Total Town Clerk Town Manager Personal services Contractual services Commodities Other Contingsncy Capital outlay Total Town Manager Total gensral government $ 396 $ 700 $ 304 i,329 6,500 5,171 26,427 22,075 (4,352) 28,152 29, 275 1,123 128,692"'` 134,525 5,833 13,371 9,000 (4,371) 1,973 - (1,973) - 27,500 27,50� 377,162 42,040 (335,122) 521,198 213,065 (308,133) 283,824�� 283,322 (502) 78,271 71,515 (6,756) 9,212 6,500 (2,712) 15,617 17,350 1,733 - 4, 000 4, 000 386,924 382,687 (4,237) 124,371 "� 123,110 (1,261) 6,823 30,000 23,177 7,334 10,000 2,666 37,535 39,865 2,330 176,063 202,975 26,912 438,411 �� 466,971 28,560 183,843 178,500 (5,343) 8,949 9,000 51 27,049 17,000 (10,049) - 85,707 85,707 - 4, 000 4, 000 658,252 761,178 102,926 3, 669, 931 3, 900, 461 230, 530 I 38 _- TOWN OF MARANA, ARIZONA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN UNRESERVED FUND BALANCE - BUDGET AND ACTUAL GENERAL FUND - EXHIBIT A-2 (Continuedj Year Ended June 30, 2002 EXPENDITURES (continued) Development and planning services Building services Personal services Contractual services Commodities Other Total building services Planning and zoning Personal services Contractual services Commodities Other Capital outlay Total planning and zoning Development services administration Personal services Contractual services Commodities Other Capital outlay Total development services administration Total development and planning services Town attorney Tax Water Prosecution Annexation General services C�ndemnations and acquisitions Total town attorney Police Personal services Contractual services Commodities Other Total police Variance - Favorable Actual Budget (Unfavorable) $ 612,676 `� $ 628,129 $ 15,453 2,784 14,50Q 11,716 12,178 7,730 (4,448) 25,107 42,965 17,858 652,745 693,324 40,579 323,961 '� 341,477 17,516 36,597 45,250 8,653 17,415 13,000 (4,41� 17,049 6,035 (11,014) - 3, 000 3, 0�� 395,022 408,762 13,740 459,021 � 427,521 (31,500) 190,655 145,145 (45,510) 773,534 187,000 (586,534) 16,853 29,625 � 2,772 2,030,894 1,917,000 (113,894) 3,470,957 2,706,291 (764,666) 4,518,724 3,808,377 (710,34'� 8,972 4,000 (4,972} 21,438 25,000 3,562 128,279 140,000 11,721 17,253 8,000 (9,2�3) i �s,�o� � so,000 �� s,�o�� 15,071 20,000 4,920 370,720 357,000 (13,720) 3,488,406 f 3,716,621 22g,2� � 77,101 76,564 (�3� 59,193 107,896 48,703 75,201 72.1b0 (3,051) 3, 699, 901 3, 973, 231 273, 330 39 TOWN OF MARANA, ARIZONA STATEMENT OF REVENUES, EXPENDITUFiES AND CHANGES IN UNRESERVED FUND BALANCE — BUDGET AND ACTUAL GENERAL FUND — EXHIBIT A-2 (Continued) Year Ended June 30, 2002 EXPENDITURES (continued} Magistrate court Personal services Contractual senrices Commodities Other Capital outlay Total magistrate court Public works Personal services Contractual services Commodities Other Capital outlay Total public works Parks and recreation Personal services Contractual services Commodities Other Capital outlay Total parks and recreation Total expenditures OTHER FINANCIAL USES Transfers to otherfunds Total expenditures and other financial uses Excess of revenues and other financial sources over expend— itures and other financial uses OTHER CHANGES IN FUND EOUITY Increase in reserve for prepaid expenditures Residual equity transfers out UNRESERVED FUND BALANCE, BEGINNING UNRESERVED FUND BALANCE, ENDING $ 20,357,968 Variance — Favorable Actual Budget (Unfavorable) $ 260,574 r'` $ 329,925 $ 49,351 67,965 69,000 1,035 20,333 14,500 (5,833) � 7,2oa 17,000 (2oa) — 9,500 9,500 386,080 439,925 53,845 1,554,617�''"" 1,046,375 (508,242) 1,198,283 — (1,198,283) � ss,o�s � as,000 (� � ,o�s� 74,812 74,820 8 — 61,600 61,600 2,986,788 1,330,795 (1,655,993) 1,031,137 V�`� 1,012,728 (18,409) 95, 324 112, 450 17,126 108,057 148,600 40,543 164,089 34,850 (129,239) — 38,600 38,600 1,398,607 1,347,228 (51,379) 17,030,751 15,157,017 (1,873,734) 7,368,752 6,925,473 (443,279) 24,399,503 22,082,490 (2,317,013) 1,330,553 $ — $ 1,330,553 (20,000) (1,028,389) 20,075,804 40 d � , '` _ '. ' ' ST.�TE�•IEtiTS B SPECIAL RE��E�LE Ft':�DS Special Revenue Funds are used to account ror revenues derived from specific taxzs or other earr.iarked re��enue sources. Tne�' are usually required by statute or Federal Rrant reQulation to record panicular operatina functions of the Town. Federal Grant Funds - includes the Communitv Development Block Grants the HOME , Proaram. the COPS Grant, GITEM. HIDTA. M�NTIS, and LLEBG Grant. The se arate ., . . . . P funds ha��e been established to account ior arant re��enues and to pro��ide compliance «�ith Federal arant reaulations. Other Grant Funds - includes CJEF Court Fund, RICO, Auto Theft, LTAF Hiah�•ay liser Revenue and Fill The Gap - Courts Funds. These funds are non-federal funds required by Arizona Statutes to be Lsed for police, public works, or maQistrate eourt expenditures. ' , ' � m H ZWm pw= N=W y CWI . 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U o W m o u.. a�c O O Wpxaam¢��< �� i-- 2 f F-- — F X o d Z 2 i-- d U r w Q O W O l LL � W U Z g Q m � Z � � Z y � W m � � 2 � Q c = o U V C Z N Z � N N m (/j H � � W m N <__� < F- W d C Z � � W y �W?� LL O y LL W �» d �2Z�- f' > > WW ¢� �- J 0 Q Z W wa �N w F- � y C7 z z m � O U � a � L H LL Q `o c � �ao J N = � ti F� y a ml � 7� 3d �i m � >i _ �i I i ' �I ¢ ~ i I N al y E N C � d � H � � � � d 7 U � a m m y c � c m p c�` � � W c � a � � Z N p O � U y � C L C N� Z � ¢` = o V b� y � � v m` w tA o � o� 2 Z � N � W � o� v �.� o c o. tA v c ` y °' C7 O °' Q 1� a E c£ cc � N y � d o � c y o u o W 2 N J C C N N 7 (a W y ` - � � � a Q a � N N "6 ��'�-' �6 C� N � J~ i� >' � V d d>. �, y � i t N�' � w a�'i a U� d N�� � � � L � = y � t� N N c � °' �°' � '� � � Q � ? p O c Z o = � � � � = Z o � 'u '� d V U W�� y y�� C C � � � Q � _� j y � O. — 7 d C 0 Cl � C Z Z � ec 3 0 0 •�.2 « o o m y ` " w ` F - o�� E X' Z y x' v c` 5 5 L � O li LL c in = w �= � d � d �� y �- ,c a Wrm>joU¢¢oy3°'��a m Cy �ao �da�i�o o R N ,N, � E < >�=aam¢��U�r �� � _`m �" a� C7aU F tC �`c o c X o ❑ � _ O F- x V � F- W o d = � F 2 2 — W O LL ti O/ t0 c� ��� n� f� n f0 N O O O O �O O N Q� N a N n � y '7 a0 I� 10 M� N h f� ( � a�D a � lh N Ol o ^ N � � N 1� st f� �O � 1� 'cf op � � oNO+�.-t rni ao a eo ro o ° o � �n r> a � a o N N � �* �ri o ~ � N f7 (7 I� (�V � M N {p � � ' � � � � n �n m � n n � N N N h N p�j o I I I I I I I I I I N N � � � � � � � � U � � O � � � � O C'3 � u� w c� ro o � r`�i � 0 0 J i I N i I I I I I I I 1 N � � c� � c.� � � � � I i � vsl � � N n '�° � � � `r m ri I 1! I I ! I I I � � `� a � i I I I � � I I 1 � i � I W � � � � � � I � C � � � � � O I'I I I I I I I I I p I O I I I I O O I �! �� � � i I I � i �II � � � � � � � I � � � � � � � � � ��iiiiii ii � a � � � � I � � � � a � � � I I Ii � y I I I �I _ � � ST.�TE�1E\75 B SPECIAL REVE\L'E Ft�;�DS Special Revenue Funds are used to account for revenues derived from specific ta��s or o.ne: earmari:ed revenu� sources. The� are usually required by statute or Federal �-ant reoulation to record particular operatinQ functions of t��e Town. Federa] Grant Funds - includes the Communit�� Deveiopment Block Grants the HG��E ProQram, the COPS Grant GITEM, HIDTA, NIANTIS, and LLEBG Grant. The sep�ratz �unds have been established to account for �rant revenues and to provide complianc� �� r ederal arant reaulations. O��er Grant Funds - includes CJEF Court Fund RICO, Auto Theft LTAF, Hi�h�.a�• L ser Revenue, and Fill The Gap - Courts Funds. These funds are non-federal : anCs required by ?,rizona Statutes to be used for police, public works, or maaistratz cou.n expenditw es. � TOWN OF MARANA, ARIZONA 1999 COMMUNITY DEVELOPMENT BLOCK GRANT — SPECIAL REVENUE FUND STATEMENT OF AEVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE — BUDGET AND ACTUAL EXHIBIT B-3 Year Ended June 30, 2002 Variance — Favorable Actual Budget (Unfavorable) REVENUES Other agencies Block grants — Pima County Total revenues EXPENDITURES Current operations Community development Total expenditures Excess of revenues over expenditures FUND BALANCE, BEGiNNING FUND BALANCE, ENDlNG $ 10,152 $ 10,152 10, 000 $ 152 10, 000 152 10,152 10,000 (152) 10,152 10,000 (152) $ — $ — $ — 46 TOWN OF MARANA, ARIZONA 2000 COMMUNITY DEVELOPMENT BLOCK GRANT — SPECIAL REVENUE FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE — BUDGET AND ACTUAL EXHIBIT B-4 Year Ended June 30, 2002 Variance — Favorable Actual Budget (Unfavorable) REVENUES Other agencies Block grants — Pima County Total revenues EXPENDITURES Current operations General government Community development Total expenditures OTHER FINANCIAL USES Transfers to other fund Total expenditures and other financial uses Excess of revenues over expenditures and other financial souces FUND BALANCE, BEGINNING FUND BALANCE, ENDING $ 154,270 $ 180,000 $ (25,730) 154,270 180,000 (25,730) 46,730 22,622 69, 352 180,000 180,000 (46, 730) 157,378 110,648 84, 918 — (84, 918) 154,270 180,000 25,730 $ — � — $ — 47 TOWN OF MARANA, ARIZONA HOME PROGRAM — SPECIAL REVENUE FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES iN FUND BALANCE — BUDGET AND ACTUAL EXHIBIT B-5 Year Ended June 30, 2002 Variance — Favorabie Actual Budget (Unfavorablej REVENUES Other agencies Block grants — Pima County Miscellaneous Sales proceeds Total revenues OTHER FINANCtAL SOURCES Transfers from other funds Total revenues and other financial sources EXPENDITURES Current operations Community development Total expenditures Excess of revenues over expenditures FUND BALANCE, BEGINNtNG FUND BALANCE, ENDING $ - $ 300,000 $ �300,000� 54,456 — 54,456 54,456 300,000 (245,544) 215,617 — 215,617 270,073 300,000 (29,927) 242,708 300,000 57,292 242,708 300,000 57,292 27,365 — 27,365 74,312 — 74,312 $ 101,677 $ — $ 101,677 48 TOWN OF MARANA, ARIZONA COPS GRANT — SPECIAL REVENUE FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANCES IN FUND BALANCE — BUDGET AND ACTUAL EXHIBIT B-6 Year Ended June 30, 2002 REVENUES Other agencies Public safety — U.S. Dept of Justice Total revenues EXPENDITURES Current operations Police Totai expenditures Excess of revenues over expenditures FUND BALANCE, BEGINNING FUND BALANCE, ENDING Variance — Favorable Actual Budget (Unfavorable) � — $ 48,900 $ (48,900) — 48,900 (48,900) — 48,900 48,900 — 48,900 48,900 $ — $ — $ — 49 TOWN OF MARANA, ARIZONA RICO — SPECIAL REVENUE FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE — BUDGET AND ACTUAL EXHIBIT B-7 Year Ended June 30, 2002 Variance — Favorabie Actual Budget (Unfavorable) REVENUES Other agencies RICO funds — Pima County Interest Total revenues EXPENDITURES Current operations Police Total expenditures Excess of expenditures over revenues FUND BALANCE, BEGINNING FUND BALANCE, ENDING $ 1,325 $ 25,000 $ (23,675) 647 — 647 1,972 25,000 (23,028) 6,000 25,000 19,000 6,000 25,000 19,000 (4,028) — (4,028) 24,940 — 24,940 $ 20,912 $ — $ 20,912 50 TOWN OF MARANA, ARIZONA GITEM — SPECIAL REVENUE FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE — BUDGET AND ACTUAL EXHIBIT B-8 Year Ended June 30, 2002 Variance — Favorable Actual Budget (Unfavorable) REVENUES Other agencies Public safety — Arizona Total revenues EXPENDITURES Current operations Police Total expenditures Excess of revenues o.ver expenditures FUND BALANCE, BEGINNING FUND BALANCE, ENDING $ 164,912 $ 160,000 $ 4,912 164, 912 160, 000 4, g � 2 164,912 160,000 (4,912) 164,912 160,000 _ (4,912) $ — $ — $ — ' ' ' , ' 1 ' 51 TOWN OF MARANA, ARIZONA HIDTA — SPECIAL REVENUE FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE — BUDGET AND ACTUAL EXHIBIT B-9 Year Ended June 30, 2002 Variance — Favorable Actual Budget (Unfavorable) REVENUES Other agencies Public safety — Tucson Total revenues EXPENDITURES Current operations Police Total expenditures Excess of revenues over expenditures FUND BALANCE, BEGINNING FUND BALANCE, ENDING $ 56,861 $ 54,000 $ 2,861 56, 861 54, 000 2, 861 _ 56, 861 54, 000 (2, 861) ss,ss� �4,00o t2,ss�� $ — $ — $ — 52 TOWN OF MARANA, ARIZONA MANTIS — SPECIAL REVENUE FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE — BUDGET AND ACTUAL EXHIBIT B-10 Year Ended June 30, 2002 REVENUES Other agencies Public safety — Tucson Total revenues EXPENDITURES Current operations Police Total expenditures Excess of revenues over expen ditures FUND BALANCE, BEGINNING FUND BALANCE, ENDING Variance — Favorable Actual Budget (Unfavorable) $ 62,862 $ 53,000 $ g,gg2 62,862 53,000 g�862 62,862 53,000 (g�862� 62,862 53,000 (9,862) $ — $ — $ — 53 TOWN OF MARANA, ARIZONA AUTO THEFT — SPECIAL REVENUE FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE — BUDGET AND ACTUAL EXHIBIT B-11 Year Ended June 30, 2002 Variance — Favorable Actual Budget _ �Unfavorable) REVENUES Other agencies Pubiic safety — Arizona Totai revenues EXPENDITURES Current operations Police Total expenditures Excess of revenues over expenditures FUND BALANCE, BEGINNING FUND BALANCE, ENDING $ 48,395 $ 53,000 $ (4,605) 48,395 53,000 (4,605) 48,395 53,000 48,395 53,000 605 605 $ — $ — $ — 54 TOWN OF MARANA, ARIZONA HIGHWAY USER REVENUE — SPECIAL REVENUE FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE — BUDGET AND ACTUAL EXHIBIT B-12 Year Ended June 30, 2002 Variance — Favorable Actual Budget (Unfavorable) REVENUES Other agencies Highway user fees — Arizona Total revenues OTHER FlNANCIAL SOURCES Transfers from other fund Total revenues and other financial sources EXPENDITURES Current operations Public works Total expenditures OTHER FINANCIAL USES Transfers to other fund Total expenditures and other financial uses Excess of revenues and other financial sources over expenditures and other financial uses FUND BALANCE, BEGINNING FUND BALANCE, ENDING $ 1,023,489 $ 1,072,800 $ (49,311) 1,023,489 1,072,800 (49,311) — 1,235,268 (1,235,268) 1,023,489 2,308,068 (1,284,57g) — 2,308,068 2,308,068 — 2,308,068 2,308,068 1,023,489 — (1,023,489) 1,023,489 2,308,068 1,284,579 $ — $ — $ — 55 TOWN OF MARANA, ARIZONA LTAF — SPECIAL REVENUE FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE — BUDGET AND ACTUAL EXHIBIT B-13 Year Ended June 30, 2002 Variance — Favorable Actual Budget (Unfavorable) REVENUES Other agencies LTAF funds — Arizona LTAF — Pima Assoc. of Governments Total revenues EXPENDITURES Current operations Public works Total expenditures OTHER FINANCIAL SOURCES Transfers to other fund Total expenditures and other financial uses Excess of revenues over expenditures and other financial souces FUND BALANCE, BEGINNING FUND BALANCE, ENDING $ 76,949 $ 127,385 $ (50,436) 17,227 — 17,227 94,176 127,385 (33,209) 94,176 127,385 127,385 127,385 127,385 (94,176) 94,176 127,385 33,209 $ — � — $ — 56 TOWN OF MARANA, ARIZONA LLEBG — SPECIAL REVENUE FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE — BUDGET AND ACTUAL EXHIBIT B-14 Year Ended June 30, 2002 REVENUES Other agencies Public safety — U.S. Dept of Justice Total revenues OTHER FINANCIAL SOURCES Transfers from other funds Total revenues and other flnancial sources EXPENDITURES Current operations Police Total expenditures Excess of revenues and other financial sources over expenditures FUND BALANCE, BEGINNING FUND BALANCE, ENDING Variance — Favorable Actual _ Budget (Unfavorabie) $ 20,501 $ 25,000 $ (4,499) 20, 501 25, 000 (4, 499) 10, 879 — 10, 879 31, 380 25, 000 _ 6, 380 31, 380 25, 000 _ (6, 380) 31, 380 25, 000 (6, 380) $ — $ — $ — 57 sr.��rE��E�TS c DEBT SER�'ICE FU'�DS Debt Sen�ice Funds �� created to account for the accumulation of resources for, and tr,� pa;�ment of, general-lona term debt p:incipal and interest. �000 G°neral Obligation Debt Service Fund - this fund accounts for the accumulation oi rzsources �.nd payment of principal and interest on the series 2000 revenue bonds. Th� Town has pl�daed Town sales tax revenue, state shared revenues, licenses, fees ard permits re�-enue, anC fines, forfeitures and penalties revenue to make the requireu p��jments for this series. l 997 General Obli�ation Debt Service Fund - this fund accounts for the accumulation oi resources and paymenc of principal and interest on the series 1997 revenue bonds. The To���n has pledQed To«m sales taa revenue, state shared revenues, licenses, fees and permits revenue, and iines, forfeitures and penalties revenue to mal:e the required payments �or this series. '-: r. i � TOWN OF MARANA, ARIZONA COMBINING BALANCE SHEET DEBT SERVICE FUNDS — EXHIBIT C-1 June 30, 2002 ASSETS Restricted assets: Cash/Investments TOTAL ASSETS LIABILITIES AND FUND EQUITY FUND EQUITY Reserved fund balances Reserved for debt service Total fund equity TOTAL LIABILITIES AND FUND EQUITY 2000 1997 Generai General Obligation Obligation Totals $ 617,251 $ 395,724 $ 1,012,975 $ 617,251 $ 395,724 $ 1,012,975 $ 617,251 $ 395,724 $ 1,012,975 617,251 395,724 1,012,975 $ 617,251 $ 395,724 $ 1,012,975 58 TOWN OF MARANA, ARIZONA COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES DEBT SERVICE FUNDS — EXHIBIT C-2 Year Ended June 30, 2002 REVENUES Interest Total revenues OTHER FINANCIAL SOURCES Tranfers from other funds Total other financial sources Total revenues and other financial sources EXPENDITURES Debt service Principal retirement Interest Fiscal agent fees Total expenditures Excess (deficiency) of revenues and other financial sources over (under) expenditures FUND BALANCES, BEGINNING FUND BALANCES, ENDING 2000 1997 General General Obiigation Obligation Totals $ 554 $ 186 $ 740 554 186 740 1,247,838 786,041 2,033,879 1,247,838 786,041 2,033,879 1,248,392 786,227 2,034,619 800,000 450,000 1,250,000 465,700 335,623 801,323 3,500 — 3,500 1,269,200 785,623 2,054,823 (2o,sos� soa �20,204� 638,059 395,120 1,033,179 $ 617,251 _$ 395,724 $ 1,012,975 �9 ' � STATE:�'IE�TS D � CAPIT.�.L YROJECTS FL':�DS Capita� P=ojects Funds are created to account for the purchase or construction o; major capital faciiities which are not financed b}� th� aeneral, enterprise, or s�ecial revenue ,. iunds. �t1�0 G�r��al Ohligati n a�ital Pro�ect Fund - tr.is fund accounts for tne proceeds froin the sale oi the 2000 aeneral obliQation bonds �'hich are used for autnorized capital irlpro��er. ;.r�ts. � �J ' � 997 Ge�eral ObIigation Canital Project Fund - this fund accounts for the proceeds from t�e sale oi the 1997 Qeneral obliQation bonds «-ivch are used for autnorized capital iriproveneats. 9ther Ca�ital Pro�ect Funds - this fund accounts for the purchase or construction of major capital =acilities ��hich are not funded by Qeneral obliaation bonds. • � .� I TOWN OF MARANA, ARIZONA 2000 GENERAL OBLIGATION — DEBT SERVICE FUND � STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE — BUDGET AND ACTUAL EXHBIT C-3 1 Year Ended June 30, 2002 Variance— , Favorable Actual Budget (Unfavorable) � REVENUES Interest $ 554 $ — $ 554 � Totai revenues 554 — 554 OTHER FINANCIAL SOURCES Tranfers from otherfunds 1,247,838 1,249,900 (2,062) ' Total otherfinancial sources 1,247,838 1,249,900 (2,062) ' Total revenues and other financial sources 1,248,392 1,249,900 (1,508) EXPENDITURES ' Debt service — Principal retirement 800,000 800,000 Interest 465,700 449,900 (15,800) , Fiscal agent fees 3,500 — (3,500) Total expenditures 1,269,200 1,249,900 (19,300) � Excess (deficiency) of revenues and other financial sources over (under) expenditures (20,808) — (20,808) ' FUND BALANCES, BEGINNING 638,059 — 638,059 FUND BALANCES, ENDING $ 617,251 $ — � 617,251 , r � ,� � � � = so TOWN OF MARANA, ARIZONA 1997 GENERAL OBLIGATION — DEBT SERVICE FUND STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE — BUDGET AND ACTUAL EXHIBIT C-4 Year Ended June 30, 2002 REVENUES Interest Total revenues OTHER FINANCIAL SOURCES Tranfers from other funds Total other financial sources Total revenues and other financial sources EXPENDITURES Debt service Principal retirement interest Fiscal agent fees Total expenditures Excess (deficiency) of revenues and other financial sources over (under) expenditures FUND BALANCES, BEGlNNING FUND BALANCES, ENDING Variance— Favorable Actual Budget (Unfavorable) $ 186 $ — $ 186 186 — 186 786,041 791,230 (5,189) 786,041 791,230 _ (5,189) 786,227 791,230 (5,003) 450,000 450,000 — 335,623 335,623 — — 5, 607 5, 607 785,623 791,230 5,607 604 — 604 395,120 — 395,120 $ 395.724 � — � 395,724 -61 TOWN OF MARANA, ARIZONA COMBINING BALANCE SHEET CAPITAL PROJECTS FUNDS — EXHIBIT D-1 June 30, 2002 ASSETS Due from other funds Receivables: Other Restricted assets: Cash/Pooled Investrnents Investments TOTAL ASSETS LIABtLITIES AND FUND EQUITY LIABILITIES Accounts payable Due to other funds Deferred revenue Total liabilities FUND EQUITY Unreserved fund balances Designated for subsequent years' expenditures Total fund equity TOTAL LIABILITIES AND FUND EQUITY Other 2000 1997 Capital General General Project Obligation Obligation Funds Totals $ — $ — $ 2,367,423 $ 2,367,423 — — 254,131 254,131 10,533,977 — — 10,533,977 51,605 531,682 — 583,287 $ 10,585,582 $ 531,682 $ 2,621,554 $13,738,818 $ — $ — $ 2,488,449 $ 2,488,449 3,057,682 79,432 — 3,137,114 — — 133,105 133,105 3,057,682 79,432 2,621,554 5,758,668 7,527,900 452,250 — 7,980,150 7,527,900 452,250 — 7,980,150 $ 10,585,582 $ 531,682 $ 2,621,554 $13,738,818 62 � TOWN OF MARANA, ARIZONA COMBINING STATEMENT OF REl/ENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES CAPITAL PROJECTS FUNDS - EXHIBIT D-2 Year Ended June 30, 2002 REVENUES Other agencies Pub(ic works - Pima Assoc. of Governments Airport - State of Arizona Interest Other-User Reimbursement Total revenues OTHER FINANCIAL SOURCES Transfers from other funds Totai revenues and other financial sources EXPENDITURES Capital improvement projects Hartrnan Lane Improvements Tangerine Road Project Handicap Ramp Replacement Santa Cruz River Study Fire Protection/Suppression System Generai Plan Update Runway 3/21 Extension Cortaro Road Improvements Silverbeli Road Improvements Continental Neighborhood Park Emigh Road Ina Rd-Siiverbell/I-10 Ina/Old Father Improvement Ina/Silverbell Signal Signai Spot Safety Improvement Pavement Rehabilitation Program Roadway Safety Improvement Roadway Sign Replacement Traffic Signal Upgrade Tra�c Signal Wiring Infrastructure Inventory Marana Safety Study Santa Cruz River Trail System Berry Acres Floodway Gladden Farms Improv�ment District Marana Park RenovaUons Municipal Complex Other Projects Total expenditures OTHER FtNANCIAL USES Transfers to other funds Total expenditures and other financial uses cxcess (deficiency) of revenues and other financial sources over (under) expenditures and other financial uses FUND BALANCES, BEGINNING Residual equity transfers out FUND BALANCES, ENDING Other 2000 1997 Capital Generai General Project Obligation Obligation Funds Totals $ - $ - $ 6,988,648 $ 6,988,648 - - 106,159 106,159 273,172 22,980 - 296,152 - - 345,220 345,220 273,172 22,980 7,440,027 7,736,179 - - 6,419,370 6,419,370 273,172 22,980 13,859,397 14,155,549 ' - 126,672 126,672 - - 89,366 89,366 - - 38,954 38,954 - - 161,842 161,842 - - 96,370 96,370 - - 85,005 95,005 - - a2,sss a2,s�s ' - 8,047,743 8,047,743 - - 367,136 367,136 - - 845,150 845,15p - - 991,260 991,260 - - 101,007 101.007 - - 34,378 34,378 - - 185,509 185,509 - - 86,274 86,274 - - 951,792 951,792 - - 51,840 51,840 ' - 72,884 72,884 - - 69,204 69,204 - - 128,267 128.267 - � 36,456 36,456 - - 52,503 52,503 - - 191,412 191,412 - - 97,976 97,976 - - 47,500 47,500 - - 390,154 390,154 240,722 - 220,802 461,524 - - 238,985 238,985 240,722 - 13,859,397 14,100,119 - - 108,410 108,410 240,722 - 13,967,807 14,208,529 32,450 22,980 (108,410) (52,980) 7,495,450 1,245,865 108,410 8,84g,725 - (816,595) - (816,59�) $ 7,527,900 $ 452,250 $ - � 7,980,150 6� TOWN OF MARANA, ARIZONA 2000 GENERAL OBLIGATION — CAPITAL PROJECT FUND STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE — BUDGET AND ACTUAL EXHIBIT D-3 Year Ended June 30, 2002 REVENUES Interest Total revenues EXPENDITURES Capital improvement projects Municipal Complex Tota� expenditures Excess (deficiency) of revenues over (under) expenditures FUND BALANCES, BEGINNIN(� FUND BALANCES, ENDING Variance— Favorable Actual Budget (Unfavorable) $ 273,172 $ — $ 273,172 273,172 — 273.172 240,722 4,600,000 4,359,278 240,722 4,600,000 4,359,278 32,450 (4,600,000) 4,632,450 7,495,450 4.600,000 2,895,450 $ 7,527,900 $ — $ 7,527,900 64 TOWN OF MARANA, ARIZONA 1997 GENERAL OBLIGATION — CAPITAL PROJECT FUND STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE — BUDGET AND ACTUAL EXHIBIT D-4 Year Ended June 30, 2002 REVENUES Interest Total revenues EXPENDITURES Capitai improvement projects Fire Protection/Suppression System Water System Improvements/Acquistion Total expenditures Excess (deficiency} of revenues over (under) expenditures FUND BALANCES, BE�INNING Residual equity transfers out FUND BALANCES, ENDING Variance— Favorable Actual Budget (Unfavorable) $ 22,980 $ — $ 22,980 22,980 — 22,980 — 151,678 151,678 — 1,200,000 1,200,000 — 1,351,678 1,351,678 22,980 (1,351,678) 1,374,658 1,245,865 1,351,678 (105,813) (816,59� — (816,595) 5 452,25� $ — $ 452,250 6b _ ' ' � TOWN OF MARANA, ARIZONA OTHER CAPITAL PROJECT FUNDS - CAPITAL PROJECT FUND STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL EXHIBIT D-5 Year Ended June 30, 2002 ' REVENUES Other agencies Public works - Pima Assoc. of Governments Airport - State of Arizona ' Other Other-User Reimbursement Total revenues � OTHER FINANCIAL SOURCES Bond proceeds Tranfers from other funds Total other financial sources Total revenues and other financial sources EXPENDITURES Capitai improvement projects Hartman Lane Improvements Tangerine Road Project Handicap Ramp Replacement Santa Cruz River Study Fire Protection/Suppression System General Plan Update Runway 3/21 Extension Cortaro Road Improvements Silvert>ell Road Improvements Continental Neighorborhood Park Emigh Road Ina Rd-Silverbell/I-10 Ina/Old Father Improvement Ina/Siiverbell Signal Signal Spot Safety Improvement Pavement Rehabi(itation Program Roadway Safety Improvement Roadway Sign Replacement Traffic Signal Upgrade Traffic Signal Wiring Infrastructure Inventory Marana Safety Study Santa Cruz River Trail System Berry Acres Floodway Gladden Farms Improvement District Marana Park Renovations Munici�al Compex Other ?rojects Other Projects not started Total expenditures OTHER FINANCIAL USES Transfers to other funds Total expenditures and other financial uses Variance- Favorable Actual Budget �Unfavorable) $ 6,986,648 $ 8,235,118 $ (1,246,470) 106,159 2,672,347 (2,566,188) - i ,oso,000 �� ,oso,000� 345,220 - 345,220 7,440,027 11,957,465 (4,517,438) - 15,000,000 6,419,370 4,755,498 6,419,370 19,755,498 13,859,397 31,712,963 126,672 89,366 38,954 161,842 96,370 95,005 42,956 8,047,743 367,136 845,150 991,260 101,007 34,378 185,509 86.274 951,792 51,840 72,884 69,204 128,267 36,456 52,503 191,412 97.976 47,500 390,154 220,802 238.985 13,859,397 108,410 13,967,807 500,000 506,600 40,000 30,000 1,365,097 100,000 900,000 6,065,000 595,000 2,200,000 400,000 550, 000 45,000 100,000 150,000 1,000,000 50,000 100,000 95, 000 135,000 50,000 50,000 900,000 100,000 7,450,000 250,000 10,073,250 1,187, 500 34,987,447 1,235,268 36,222,715 (15,000,000) 1,663,872 (13,336,128) (17,853,566) 373,328 417,234 1,046 (131,842) 1.268,727 4,995 857,044 (1,982,743) 227.864 1,354.850 (591.260) 448,993 10,622 (65,509) 63,726 48,208 (1,840) 27,116 25,796 6,733 13,544 (2, 503) 708,588 2,024 7,402,500 (140.154) (220.802) 9,834,265 1,187,500 21,128,050 1,126,858 22.2�4,908 Excess (deficiency) of revenues and other financial sources over (under) expenditures and other financial uses (108,410) (4,509,752) 4,401,342 FUND BALANCES, BEGfNNING 108,410 4,509,752 (4,401,342) FUND BALANCES, ENDING $ _ g _ $ _ 66 _ ST.-�TE�'IE�TS E E\TERPRISE Fli\DS Enterprise Funds are �stablished to accoLnt for operations that are fii�anced and o�e;ated in a manner simil� to a pr;��ate bLSiness enterprises and where periodic detern7ination or" net income is desired. Expenses, inclueing depreciation, of providing aoods or se;��ices to the Qeneral public are recovered primzrily throuah user char�es. Water Ft nd - established to account ior tne financina and operation of th� Water litilitti�. All actiti-ities necessa�-y to pro�-ide �•a�er services to Town residents are accounted ior �-ithin this 2und. .Airnort authorin� - estaolished to account for the financinQ and operation of the ?�1ar2na Air�ort. `� � ' , � , , , TOWN OF MARANA, ARIZONA COMBINING BALANCE SHEET ENTERPRISE FUNDS - EXHIBIT E-1 June 30, 2002 ASSETS CURRENT ASSETS Receivables: Other Accounts Due from other governments - State of Az Due from other governments - Federai Total Due from other funds Total current assets � PROPERTY, PLANT, AND EQUIPMENT Land Water rights Improvements, including wells and tanks , Machinery, equipment, and other assets Construction in progress Organization costs Total Less accumulated depreciation and amortization Total property, plant, and equipment TOTALASSETS LIABILITIES AND FUND EQUITY CURRENT LIABILITIES Accounts payable and accrued liabilities: Accounts payable Deposits Accrued payroll Other Total Due to other funds Current portion of note payable Total current liabilities LONG-TERM LIABILITIES Note payable, less current maturities above Total long-term liabilities Total liabilities FUND EQUITY Contributed capital Equity (deficit) Total fund equity TOTAL LIABILITIES AND FUND EQUITY Water Airport Fund Authority Totals $ 78,691 $ 17,488 $ 96,179 - 492,168 492,168 - 122,566 122,566 78,691 632,222 710,913 1,116,710 - 1,116,710 1,195,401 632,222 1,827,623 68 14,720 207,090 221,810 433,696 - 433,696 4,214,281 - 4,214,281 123,025 17, 078 140,103 803,652 1,295,966 2,099,618 39,388 15,349 54,737 5,628,762 1,535,483 7,164,245 832,264 17,$35 850,099 4,796,498 1,517,648 6,314,146 $ 5,991,899 $ 2,149,870 $ 8,141,769 � 768,304 $ 414,990 a 1,183,294 86,623 - 86,623 8,247 - 8,247 9,842 - 9,842 873,016 414,990 1,288,006 - 285,688 285,688 8, 800 - 8, 800 881,816 700,678 1,582,494 44, 000 - 44, 000 44,000 - 44,000 925,816 700,678 1,626,494 6,301,490 573,683 6,875,173 (1,235,407) 875,509 (359,898) 5,066,083 1,449,192 6,515,275 $ 5,991,899 $ 2,149,870 � 8,141,769 TOWN OF MARANA, ARIZONA COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND EQUITY — ENTERPRtSE FUNDS — EXHIBIT E-2 Year Ended June 30, 2002 Water Fund OPERATING REVENUES Current use charges Other Total operating revenues OPERATING EXPENSES Material, supplies, and other expenses: Personal services Contractual services Commodities Other Depreciation expense Total operating expenses Loss from operations NONOPERATING REVENUES Other agencies Airport — State of Arizona Airport — Federal Aviation Administration Total nonoperating revenues NET INCOME (LOSS) DEFICIT, BEGINNING EQUITY (DEFICIT), ENDING CONTRIBUTED CAPITAL, BEGINNING Residuaf equity transfers in CONTRIBUTED CAP(TAL, ENDING FUND EQUITY, ENDING $ 791,283 97, 228 888,511 262,013 296,496 223,599 65, 886 205,810 Airport Authority Totals $ 86,284 $ 877,567 200 97,428 86,484 974,995 57,537 319,550 59,578 356,074 9,152 232, 751 38,436 104,322 6,485 212,295 1,053,804 971,188 1,224,992 (165,293} (84,704) (249,997) — 741,353 741,353 — 388,948 388,948 — 1,130,301 1,130,301 (165,293) 1,045,597 880,304 (1,070,114) (170,088) (1,240,202) (1,235,407) 875,509 (359,898) 4, 622,170 1,679,320 6,301,490 $ 5,066,083 408,019 5,030,189 165, 664 1, 844, 984 573,683 6,875,173 $ 1,449,192 $ 6,515,275 .� TOWN OF MARANA, ARIZONA COMBINING STATEMENT OF CASH FLOWS ENTERPRISE FUNDS — EXHIBIT E-3 Year Ended June 30, 2002 Water Fund CASH FLOWS FROM OPERATING ACTIVITIES Loss from operations Adjustments to reconcile loss from operations to net cash provided (used) by operating activities: Depreciation Changes in operating assets and liabilities: Increase in accounts receivable Increase (decrease) in accounts payable and accrued expenses Net cash provided (used) by operating activities CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITlES Increase (decrease) in due from other funds Increase in due to other funds Net cash provided (used) by noncapital financing activities CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Increase in accounts receivable Increase in due from other funds Increase in accounts payable and accrued expenses Increase in due to other funds Recognition of nonaperating revenues Residual equity transfers from capital project funds Residual equity transfers from general fund Principal paid on note payable Purchase of fixed assets Net cash provided by capital and related financing activities NET WCREASE IN CASH CASH, BEGINNING OF YEAR CASH, END OF YEAR Airport Authority Totals $ (165,293) $ (84,704) $ (249,997) 205,810 6,485 212,295 (17,673) (1,384) (19,057) 16,662 (10,279) 6,383 39,506 (89,882) (50,376) (223,943) 9,518 — 80, 364 (223,943) 89,882 (214,425) 80,364 34.061 — (614,734) (614,734) (724,463) — (724,463) 724,463 409,411 1,133,874 — 205,324 205,324 — 1,130,301 1,130,301 816, 594 — 816, 594 862,726 165,664 1,028,390 (8,800) — (8,800) (1,486,083) (1,295,966) (2,782,049) 184.437 184,437 $ — $ — $ — 70 TOWN OF MARANA, ARIZONA COMPARATIVE BALANCE SHEETS WATER FUND — EXHIBIT E-4 June 30, 2002 and 2001 ASSETS CURRENT ASSETS Receivables: Other Due from other funds Total current assets PROPERTY, PLANT, AND EQUIPMENT Land Water rights Improvements, including welis and tanks Machinery, equipment, and other assets Construction in progress Organization costs Total Less accumulated depreciation and amortization Total property, plant, and equipment TOTAL ASSETS LIABILITIES AND FUND EQUITY CURRENT LIABILITIES Accounts payable and accrued liabilities: Accounts payable Deposits Accrued payroll Other Total Current portion of note payable Total current liabilities LONG—TERM LIABILITIES Note payable, less current maturities above Total long—term liabilities Total liabilities FUND EQUITY Contributed capital Deficit Total fund equity TOTAL LIABILITIES AND FUND EQUITY 2002 $ 78, 691 1,116,710 1,195, 401 14,720 433,696 4,214,281 123,025 803,652 39, 388 5,628,762 832,264 4, 796,498 $ 5,991,899 $ 768,304 86, 623 8,247 9, 842 873, 016 8, 800 881, 816 44, 000 44, 000 925,816 6,301,490 (1,235,407) 5,066,083 $ 5,991,899 2001 $ 61,018 168.304 229,322 14, 720 433, 696 3,574,173 80,702 39, 388 4,142,679 626,454 3,516,225 $ 3,745,547 $ 55,383 61,662 7, 516 7, 330 131, 891 8, 800 140, 691 52, 800 52,800 193,491 4, 622,170 (1, 070,114) 3,552,056 $ 3,745,547 71 TOWN OF MARANA, ARIZONA COMPARATIVE BALANCE SHEETS AIRPORT AUTHORITY — EXHIBIT E-5 June 30, 2002 and 2001 2002 ASSETS CURRENT ASSETS Receivables: Other Accounts Due from other governments — State of Az Due from other governments — Federal Total Due from other funds Total current assets PROPERTY, PLANT, AND EQUIPMENT Land Machinery, equipment, and other assets Construction in progress Organization costs Total Less accumulated depreciation and amortization Total property, plant, and equipment TOTAL ASSETS LIABtLIT1ES AND FUND EQUITY CURRENT LIABILITIES Accounts payable and accrued liabilities: Accounts payable Accrued payroll Total Due to other funds Total current liabilities FUND EQUITY Contributed capital Equity (deficit) Total fund equity TOTAL LIABILlTIES AND FUND EQUITY $ 17,488 492,168 122,566 632,222 632,222 207, 090 17, 078 1,295,966 15, 349 1,535,483 17, 835 1,517,648 $ 2,149,870 $ 414,990 414,990 285,688 700,678 573,683 875, 509 1,449,192 $ 2,149,870 2001 $ 16,104 16,104 9,518 25, 622 $ 207,090 17, 078 15,349 239, 517 11,350 228,167 253.789 13,818 2,040 15,858 15,858 408,019 (170, 088) 237, 931 $ 253,789 72 TOWN OF MARANA, ARIZONA STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND EQUITY — BUDGET AND ACTUAL WATER FUND — EXHIBIT E-6 Year Ended June 30, 2002 OPERATING REVENUES Current use charges Other Total operating revenues OPERATING EXPENSES Material, supplies, and other expenses: Personal services Contractual services Commodities Other Depreciation expense Total operating expenses LOSS FROM OPERATIONS DEFICIT, BEGINNING DEFICIT, ENDING CONTRIBUTED CAPITAL, BEGINNING Residual equity transfers in CONTRIBUTED CAPITAL, ENDING FUND EQUITY, ENDING Variance — Favorable Actual Budget (Unfavorable) $ 791,283 $ 655,000 $ 136,283 97,228 — 97,228 888,511 655,000 233,511 262,013 261,776 (237) 296,496 323,825 27,329 223,599 13,000 (210,599) 65,886 73,489 7,603 • 205,810 — (205,810) 1, 053, 804 672, 090 (381, 714) (165,293) (17,090) (148,203) (1,070,114) — (1,070,114) (1,235,407) (17,090) (1,218,317) 4,622,170 — 4,622,170 1,679,320 17,090 1,662,230 6,301,490 17,090 6,284,400 $ 5,066,083 $ — $ 5,066,083 73 TOWN OF MARANA, ARIZONA STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND EQUITY - BUDGET AND ACTUAL AIRPORT AUTHORITY - EXHIBIT E-7 Year Ended June 30, 2002 OPERATING REVENUES Current use charges Other Total operating revenues Variance - Favorable Actual Budget (Unfavorabie) $ 86,284 $ 70,000 $ 16,284 200 - 200 86,484 70,000 16,484 OPERATING EXPENSES Material, supplies, and other expenses: Personal services 57,537 67,920 10,383 Contractual services 59,578 43,500 (16,078) Commodities 9,152 3,085 (6,067) Other 38,436 42,250 3,814 Depreciation expense 6,485 - (6,485) Total operating expenses 171,188 156,755 (14,433) Loss from operations (84,704) (86,755) 30,917 NONOPERATING REVENUES (EXPENSES) Other agencies Airport - State of Arizona 741,353 - 741,353 Airport - Federa) Aviation Administratian 388,948 - 388,948 Capital outlay - (25,000) 25,000 Total nonoperating revenues (expenses) 1,130,301 (25,000) 1,155,301 NET INCOME (LOSS) 1,045,597 (111,755) 1,186,218 DEFICIT, BEGINNING EQUITY (DEFICIT), ENDING CONTRIBUTED CAPITAL, BEGINNING Residual equity transfers in CONTRIBUTED CAPITAL, ENDING FUND EQUITY, ENDING (170,088) - 875,509 (111,755) 408, 019 165,664 573,683 � 1,449,192 � (170,088) 1,016,130 - 408, 019 111,755 53,909 111,755 461,928 - $ 1,478,058 74 � ' ' - �- �_ � � ST.aTE�1E�"rS F GE�ER�L FI�ED .�SSETS ACCOt��"r GI:Ot�P The Gene;al Fiaed .�ssets Account Group is comprised o� those 2ixed asse:s ot a �o��ernmental jurisdiction ��hich are not accounted for in the Enterprise Funds. Infrastructure assets «'hich include roads, brid�es, streets and street liahtina s��stem: are not included in these schedules. � ' ' TOWN OF MARANA, ARIZONA COMPARATIVE SCHEDULE OF GENERAL FIXED ASSETS BY SOURCE EXHIBIT F-1 June 30, 2002 and 2001 2002 2001 GENERAL FIXED ASSETS Land Buildings Assets under capital lease Machinery, equipment, and other assets Marana Park Continental Neighborhood Park Leasehold improvements TOTAL GENERAL FIXED ASSETS $ 2,400,765 2,887,220 536,385 5,413,162 1,394,663 518,892 464,157 $13,615,244 $ 2,279,821 2,609,147 3, 939, 342 1,111,614 464,157 $ 10,404,081 INVESTMENT IN GENERAL FIXED ASSETS BY SOURCE From Current Revenues $ 8,997,487 From Revenue Bonds 4,079,980 From Federal Grants 537,777 TOTAL INVESTMENT IN GENERAL FIXED ASSETS $13,615,244 $ 6,037,953 3,839,258 526, 870 $ 10,404,081 � 76 N c7 �+�j c0 cD O t� C� v� T � � � O O c0 O N V ^ � � � T n � � � � F o f D � N T rn c0 O cD N N M i i U� � � N t7 n � 0) O CO Q � ° E a r� a� '- v y>� � N .- � I I I I � � O� J � � � � I +�- � N N � � � Y� � � '� r O � I � I I I I I � c0 CO � � � L a l U Z � � � � � U Q � ca c*� c� Z C Y (�O c�0 Q � t6 � � � � � � � V 'V' Z � a � M O � � T � ¢ Z - ; Z� ��', •-• ' � f� m tn c� �� N N,L tn i �p � n � � t0 O (p N} � E O N i o c•i in oi �` � ,- � C� L� N � � (O O t� (p I N � C9 Q � N O N c0 6.� Q� � _ cO ~ V� Q fA � � � W � ; '_ '' N in N ' Efl � Q W H- � Q � m � : i � � � Q= C N�� Q� ! �.� CO � X X � N .� •— !A ! � C`� W� Q j� Ji � � � I I I � � M Z �y ! � OQ � � ¢ Z rn ° 'n � � � ° � � (� 1� N W � �'? N C7 �; N I � � o � � I � LL �', N �p (p �p O m + '- N w ! � � � � W o �n ,. ,� _ �; � � n � c � v � � � � � � � o N (p � �" N � � � F- W � a � � `. = Q �> : �� ; c a � <: � � � W � N Q O" V � x C' � � � �> � Ll (C � C C ... N � G""�7 � > N �l � N � � � •� Q > � V tA � � c4 � Q V O � y Y � � «. W ii: � o•° `� 3 � a.� � W � in o F o F C7 � � N U '— v1 c > rn . �m a� � O � � � a � a U p� � � O — F- � � TOWN OF MARANA, ARIZONA SCHEDULE OF CHANGES IN GENERAL FIXED ASSETS — BY FUNCTION AND ACTIVITY EXHIBIT F-3 Year Ended June 30, 2002 General Fixed Additions Deletions General Fixed Assets and and Assets Function and Activity July 1, 2001 Transfers Transfers June 30, 2002 General government $ 894,810 $ — $ (20,688) $ 874,122 Development and planning services 415,539 — — 415,539 Police 1,661,054 536,385 — 2,197,439 Magistrate court 154,306 — — 154,306 Pubficworks 1,273,058 — — 1,273,058 Community development 914,456 146,604 (104,010) 957,050 Development services administration 3,799,736 1,850,931 — 5,650,667 Parks and recreation 1,291,122 801,941 — 2,093,063 TOTAL GENERAL FIXED ASSETS $ 10,404,081 $ 3,335,861 $ (124,698) $ 13,615,244 78 ' �. � I ' I ' Q m O Z Z O � U Z Z � � m !a CL N W Q �} ��v Q�pya QQWti � ��az� LL W� O F � Z Z v� W O Z ¢ W > O � J Q Q W 2 W � � N O N N� In � N W y� 70iA�D(7�c�(DMN O� ��t�O� ViNO�c��O � t0 c0 C c� O � O v f0 Q, � N� t0 01 � V� c� t7 � .-� �NtO I � d I � 1� N N 1� �D N W U � d �� I I N�A � N CV N � � N N � �N 't�D00�� �c y corn on�on- V� N� I I Naot�o��o� ri c�i .- n v � ^ � C ���O �NO � � n��nco� mrto �n m roa�oa�oN� I I �`a � V � N t0 M O� M a m � � ¢ � oconrn.-v�nrnrno � �nroovv�o�nr��n �� a.. �Nf�NOfON1nOJ1� � � C O f0 t�.-I�(OOd'� �� E � N �� N � N N Q� > o � U � u� mvaornrn.-ocn��a f0 V' .- 1!') 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O O O O U U U U U � N � N � '0 �-. y .- ... .�.. � � � � � (((" v � v � � � � ^ ^ X X � � � � � � �n tn tn tn U a� a� a� a� � N N N � � � � � � � O O O O U ,� « v- `' - .� i M CD CO O � � � / � � W W V! T +� co c� d- cfl �cacnmco N C'7 N r Ct 0 K3 fF? b�3 ff3 � � � � N � � 'II � � � U U U U � � � � � � � IL��� N p � � O O O -� � � N N N Q Q I I I I co � � � O O c� � � � O O � � /�` N N � W �V �V � � �� W � � � � O � �_ �•_. �= 4= � N � � � � � � O O O O p � t� N (� N ~ � N N � N � fII tC (� c6 U F- F- F-- I- � Q �N CD � O � � � � � v v � , � , ' , , ' T ' W ' ' , ' � ' L 1 C � ' TOWN OF MARANA, ARIZONA TABLE III ASSESSED AND ESTIMATED VALUE OF TAXABLE PROPERTY � LAST TEN FISCAL YEARS (Unaudited) ' , Assessed Estimated Fiscal Property Property Year Value Value ' 1992-93 $ 20,105,438 $ 156,300,829 1993 —94 21,360,473 160,582,056 1994-95 46,427,724 297,740,632 , 1995-96 49,677,845 325,467,683 1996-97 59,454,386 363,689,243 1997-98 72,242,105 485,315,813 � 1998=99 81,390,365 560,419,914 1999-00 98,250,095 693,931,626 2000 01 310,432,295 2,761,526,707 2001 —02 341,216,183 3,015,170,413 ' ' � Note: Includes reai property only '' Source: Pima County Assessor's Office of Pima County, Arizona ' r � � � � � 82 ' _ Ratio of Total Assessed Value to Total Estimated Value 13% 13% 16% 15% 16% 15% 15% 14% 11% 11% , � f" Z W � Z � W > O � � Z -� ¢ a� Z a --� V� O g�� � W � W Q � � } Q � W Z � V m frm Q �LL. � � � � �O W � LL Z � � N ' `� 5 � N W �a � X H � LlJ a 0 � 0. N O m c0 O t� 'cT tD [O t0 fD ��7 CO h CO C�D f� N rn Oc'�v MMO>O>t�c'� �p *'O�CON�(pOf�O>N � N N N N �� N N N N � � p O O O O O O O O O O � ���.�-�.�-��rr.�-� N = � � ` C N��' O O O O O O O O O O U Q � c o 0 U � m V y � � � � � � V 1n tt sY [f �,,, 0000 I I I I i I��� M LL N N Q � fn � CO mCOMCON(��OM '� y tn � C� M M N� I� t� (7 7 Of i) O� � O�t a0 Of t0 In v c') � p�•� O)OrNrrM�A��A � 0 in Or�.-rr-r.-.- � U � � o rn C a1 O V .- h O M n t� (O m� •� � L'� r' �(D N ln tO (D tT V' N O U.y ht�t�l�tD(DC0 W aDl� � � �� t0 O1 f� 'tt O� N N C O p � N N tA t� h tt � O t0 i p O•� (O(7NNmp� fOtqhCO '�- V in Phhh(DfOhl�t�h � � 0 � CO (9 (O (O (O (O (D t0 LO (O tQ �"0 O p C9(DtAtANNOOtv1n �? O p ='` In C(`) M M(7 M M O� O� a� LL � Q o 0 0 0 0 0 0 0 0 0 � N N N N N N N N N N � Q�O NNNOO � d� +- N N N N N N N N N � 0 0 0 0 0 0 0 0 0 0 o�� U � 4�T I N l� N('�7 C�') l� cp ��� O O M(D ,- � N ��p n �? OCOf�OrNtn�t�M a p uicvuivcuiuiuiui U � 0 0 0 o = n o 0 d o c c c R N O O O ���� � I I � Q fA � I c ��tt [ �tDhcD0�0.--N ,� mmrnrnrnrnrn000 � a i i i i i i i i i i ji � N C'y V tfi t0 t� CO O� O O) O) O> O> O> � O) 0) O O r- N N N N O Z t/1 N U r m N y N � C U d U E c� �, O � o t N � � O C ro T Q � o R g •- O d >. y � 0 C w � 3 � •-�� 1-- � N L c �. v�, 3 0 0 �~ N N — �� E �, o � p —°' � o L d � � O O rn T fl d � � i6 � X � • o •� o a� � � a C°� �. �...,..•� �' � `"�• �^j �' � � ,�` X ��r.,,.. � J � � a d U N C O U c 3 0 � .a a d tt N � � � � � � rt � U � N '� - LJ O � O O V n- U N q U � � `� � C � � � 3 °7 0 d H N QJ 4f L U N � d d .-• (� _ �> 3 N t o °' d� L � O N � 0 0 t cn a � C .� O LL U C R U N � O 0 r U � m c m `m � � � � � U t4 � ' �,; a, U � O � , �� ' ' ' � ' ' � � � ' , � , � II � ' TOWN OF MARANA, ARIZONA TABLE V COMPUTATION OF LEGAL DEBT MARGIN GENERAL OBLIGATION BONDS June 30, 2002 (Unaudited) Net Assessed Valuation Debt Limit Amount of debt applicable to debt limit: General obligation bonds outstanding Less assets in debt service fun�ds available for payment of principal Amount of debt applicable to debt limt Legal debt margin available $ 341,216,183 20% Bonds (i) $ 68,243,237 6% Bonds (2) $ 20,472,971 Total $ 88,716,208 $ 68,243,237 $ 20,472,971 $ 88,716,208 Notes: (1) Under Arizona law, Towns can issue general obligation bonds for purposes of water, sewer, artificial light, and parks up to an amount not exceeding 20% of assessed valuation. (2) Under Arizona law, Towns cari issue general obligation bonds for all purposes other than those listed in Note (1) above, up to an amount not exceeding 6% of assessed valuation. Sources: Town of Marana, Arizona and Pima County Assessor's Office of Pima County, Arizona 84 TOWN OF MARANA, ARIZONA TABLE VI COMPUTATION OF DIRECT AND ESTIMATED OVERLAPPING BONDED DEBT June 30, 2002 (Unaudited) Jurisdiction Pima County Marana School District Flowing Wells School District Total estimated overlapping bonded debt Net Bonded Debt Outstandin $ 183,070,000 88, 965, 000 15, 625, 000 Estimated Percentage Appiicable to Town of Marana 7.1176% 27.0100% 7.6923 % Amount Applicabie to Town of Marana $ 13,030,134 24,029,447 1,201,923 Town of Marana, Arizona Total direct and estimated overlapping bonded debt 287, 660, 000 15,080,000 100.0000% � 302,740 000 Notes: (1) The bonded debt of Town of Marana, Arizona includes revenue bonds issued by the Marana Municipal Property Corporation. (2) Percentages and applicable amounts are estimated by the Town of Marana, Arizona based upon assessed property values and square mileage of intersected territory. Sources: Town of Marana, Arizona and Pima Coun#y Assessor's Office of Pima County, Arizana 38,261,504 15,080,000 $ 53,341 504 85 _ TOWN OF MARANA, ARIZONA TABLE VII LEASE REWENUE BOND COVERAGE LAST TEN FISCAL YEARS (Unaudited) Fiscal Year 1992 —93 1993 — 94 1994 — 95 1995 — 96 1996 —97 1997 —98 1998-99 1999-00 2000-01 2001-02 Excise Revenues Principal $ 1,148,229 $ — 3,902,424 — 6,447,896 5,000 7,516,097 15,000 9,461,127 15, 000 10,995,247 560,000 14,963,819 245,000 17,267,065 415,000 16,999,093 1,185,000 23,963,296 1,250,000 interest _ $ 49,402 $ 47,361 47, 061 45,993 44, 903 479,362 370,250 811,549 801,323 Total 49,402 47,361 52,061 60,993 59,903 560,000 724, 362 785,250 1,996,549 2,051,323 Coverage 23.24 82.40 123.85 123.23 157.94 19.63 20.66 21.99 8.51 11.68 N otes: (1) Excise revenues include Taxes, Other agencies, Licenses, fees and permits, and Fines, forfeitures and penalties in General Fund revenues. (2) Excise revenues of the General Fund are pledged toward payment of the lease revenue bonds (3) For fiscal 97-98, 2 bond series were defeased. �545,000 of the $560,000 in principal was defeased. Because of the timing of the defeased debt and the issuance of the 1997 bond series, there was no interest expense incurred/recorded forfiscal 97-98. Source: Town of Marana, Arizona 86 TOWN OF MARANA, ARIZONA TABLE Vlii DEMOGRAPHICS June 30, 2002 (Unaudited) Population by Age Group Percentage Age Group Number of Total Under 5 1,170 8.63% 5-14 1,985 14.64% 15 —19 740 5.46% 20-29 3,026 22.32% 30 — 39 2, 351 17.34% 40-49 1,650 12.18% 50-64 1,340 9.88% 65 and over 1,294 9.55% Total 13,556 100.00% Population by Ethnic Background Percentage Age Group Number ofi Total White 9,718 71.69% Hispanic 2,663 19.64% Black 392 2.89% Native American 286 2.11 % Other 497 3.67% Total 13,556 100.00% Population by Jurisdiction: Town of Pima State of Years Marana County Arizona 2000 Census 13,556 843,746 5,130,632 1998 Estimate 9,965 823,900 4,764,025 1995 Special Census 5,309 758,050 4,228,900 1990 Census 2,187 666,880 3,665,305 1980 Census 1,674 531,443 2,718,425 1970 Census 1,154 351,667 1,775,3gg Note: Population figures are based on 2000 Census of Population and Housing issued May 2001. Sources: U.S. Census Bureau 87 TOWN OF MARANA TABLE IX PROPERTY VALUE AND CONSTRUCTION LAST TEN FISCAL YEARS (Unaudited) Fiscal Year 1992-93 1993-94 1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 Estimated Property Value 156,300,829 160,582,056 297,740,632 325,467,983 363,689,243 485,315,813 560,419,914 693,931,626 2,761,526,707 3,015,170,413 Residential Construction Number of Units Value 112 9,417,569 447 40,709,699 320 28,018,383 329 34,083,387 435 68,352,903 713 77,801,401 1,003 108,490,481 786 93,628,161 690 85,603,244 862 117,658,256 Commercial Construction Number of Units Value 1 20,000 5 189,244 41 5,742,572 40 1,842,171 36 4,284,366 40 6,675,409 37 15,730,402 22 9,471,305 32 7,548,471 36 17,535,405 Source: Town of Marana, Pima County :: TOWN OF MARANA TABLE X TOP TEN TAXPAYERS SELECTED INDUSTRY GROUPS June 30, 2002 (Unaudited) Retail Costco Home Depot K-Mart Target Driver's Mart Sam Levitz Furniture Fry's Food and Drug Petsmart Tucson Cycle and Ski Big Lots Restaurant & Bars Cracker Barrel McDonald's Wendy's Taco Bell IHOP til Abner's Hooter's EI Molinito Domino's Pizza Jack in the Box Construction Del Webb Homes Pulte Homes U S Homes Richmond American Homes D R Horton Homes Scott Homes Multifamily Borderland Construction Hunter Construction T.L. Roof & Associates R.A.S. Builders Source: Town of Marana Note: Since the Town does not levy property taxes, the top ten sales taxpayers are based on Town sales tax collections. :� TOWN OF MARANA TABLE XI MISCELLANEOUS STATISTICAL DATA June 30, 2002 (Unaudited) Date of incorporation: March 21, 1977 Form of Government: 7 member Council/Manager Town Employees Full-Time � 97 Part-Time 64 Total 261 Police Protection Number of Stations Total Full-Time Employees Commissioned Employees Parks and Recreation Acres Parks Playgrounds Swimming Pools Water Utility Operable Wells Active Services: Metered Unmetered Water Disfributed (Gallons) 2 74 57 40 1 1 1 16 1,308 57 244,327,394 Source: Town of Marana � .� �